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 20, 2019

 ________________________________________________________________

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.

OnFebruary 20, 2019, Sonic Automotive, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal fourth quarter and fiscal year ended December 31, 2018 (the “Earnings Press Release”). Acopy ofthe Earnings Press Releaseis attached hereto as Exhibit 99.1 and a copy of the earnings call presentation materialsis attached hereto as Exhibit 99.2.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release of Sonic Automotive, Inc., dated February 20, 2019
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: February 20, 2019	By:	/s/ STEPHEN K. COSS
		Stephen K. Coss
		Senior Vice President and General Counsel

EX-99.1

Exhibit 99.1

Sonic Automotive, Inc. Reports Fourth Quarter and Full Year Results

EchoPark Grows Retail Unit Volume 95%

CHARLOTTE, N.C. – February 20, 2019 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported financial results for the fourth quarter and full year ended December 31, 2018.

•Fourth quarter revenue and gross profit of $2.6 billion and $370.7 million, respectively

•Record fourth quarter pre-owned retail unit sales of 35,135 units

•Record quarterly F&I gross profit per retail unit of $1,659

•Record quarterly F&I gross of $109.6 million

•EchoPark stores retailed 8,762 units during the fourth quarter, up 94.9% from the fourth quarter of 2017

•GAAP continuing operations earnings per diluted share of $0.51 per diluted share in the fourth quarter of 2018

•GAAP continuing operations earnings per diluted share of $1.22 per diluted share for the full year 2018

•Adjusted continuing operations earnings per diluted share of $0.76 per diluted share in the fourth quarter of 2018

•Adjusted continuing operations earnings per diluted share of $1.79 per diluted share for the full year 2018

•Increased quarterly cash dividend 67%, to $0.10 per share

Fourth Quarter and Full Year2018 Results

GAAP Basis

Net income from continuing operations for the fourth quarter of 2018 was $22.0 million, or $0.51 per diluted share. Comparatively, net income from continuing operations for the fourth quarter of 2017 was $62.1 million, or $1.42 per diluted share.

Net income from continuing operations for the full year 2018 was $52.4 million, or $1.22 per diluted share. Comparatively, net income from continuing operations for the full year 2017 was $94.2 million, or $2.12 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 fourth quarter of 2018 was $32.7 million, or $0.76 per diluted share. The adjustments in the fourth quarter of 2018 relate to lease-related matters and fixed asset and franchise asset impairments. Adjusted net income from continuing operations for the fourth quarter of 2017 was $36.6 million, or $0.84 per diluted share. The adjustments in the 2017 quarterly period relate to the benefit of the change in the federal income tax rate in future periods, a gain related to the disposal of franchises, adjustments to physical damage accruals and charges related to fixed asset and franchise asset impairments and legal matters.

Adjusted net income from continuing operations for the full year 2018 was $76.9 million, or $1.79 per diluted share. The adjustments in the 2018 annual period relate to fixed asset and franchise asset impairments, legal, storm damage and lease exit charges, long-term compensation related charges and executive transition costs, offset partially by gains related to the disposal of franchises. Adjusted net income from continuing operations for the full year 2017 was $82.2 million, or $1.85 per diluted share. The adjustments in the 2017 annual period relate to the benefit of the change in the federal income tax rate in future periods, gains related to the disposal of franchises and charges related to fixed asset and franchise asset impairments, debt refinance costs and legal matters.

Commentary

David Smith, Sonic’s and EchoPark’s Chief Executive Officer, commented, “We saw new car volume erode in the fourth quarter of 2018 versus the prior year quarter, driven by difficult year-over-year comparisons in Texas given Hurricane Harvey in 2017. We continue to outperform our internal targets on used vehicles and F&I which both posted records in the fourth quarter of 2018. Our EchoPark platform continues to grow at a rapid pace, up 95% in unit volume in the fourth quarter of 2018, compared to the prior year quarter. We expect to see new car volatility continue over the long term and believe EchoPark growth will add more stability to our future operations. We believe EchoPark will provide Sonic with diversification that will hedge the risk of new vehicle manufacturer driven swings in volume and incentives that can negatively affect the profitability of our franchise operations. We expect 2019 to be a challenging year, given new car volatility, but believe our used vehicle, fixed operations and F&I performance will more than offset this volatility. In addition, our EchoPark platform should significantly improve its profit performance in 2019.”

Jeff Dyke, Sonic’s and EchoPark’s President, commented, “I agree with David Smith’s comments, and would add that our exposure to BMW and Honda, which make up on average 40% of our profits, makes it difficult when these brands have challenging years. I am also enthusiastic about our EchoPark performance and look forward to announcing even better results as we move into the next couple of quarters. We expect 2019 to be a verybig year for the EchoPark brand. We successfully launched our Charlotte store in the fourth quarter of 2018,which was profitable in the month of December, its second full month of operation, and performed even better in January. Our Houston store opened on December 7, 2018 and was our bestEchoPark store opening to date, selling 266 vehicles in the last three weeks of December and selling 373 vehicles in January. We expect Houston volume to continue climbing and ultimately operate in the volume range of our Dallas location, which sells nearly 1,200 vehicles a month. We expect the interest rate environment to remain challenging in 2019, anticipating several rate hikes. Given our luxury mix with higher than average inventory values, rising interest rates considerably erode our profitability. Accordingly, we are actively managing our inventory balances. Our days’ supply numbers in both new and used vehicles were 59 days and 31 days, respectively, at the end of 2018. Given this challenging environment, we completed headcount reductions in the first quarter of 2019, reducing our corporate and regional staff by over 6%, and have identified additional savings opportunities to reduce costs in 2019 and will continue to search for additional cost savings measures throughout 2019.”

HeathByrd, Sonic’s and EchoPark’s Executive Vice Presidentand Chief Financial Officer, added, “Given the volatility in the new car market, coupled with our expansion options for EchoPark, we will discontinue our historical practice of providing annual earnings per share guidance. In addition, starting in the first quarter of 2019, we will report our results on a GAAP basis only.”

Fourth Quarter 2018 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 towww.sonicautomotive.com, then click on “Our Company,” then “Investor Relations,” then the “Earnings Conference Calls” link at the bottom of the page.

Presentation materials for the conference call will be accessible beginning the morning of the conference call on the Company’s website at www.sonicautomotive.com by clicking on “Our Company,” then “Investor Relations,” then the “Webcasts & Presentations” link at the bottom of the page.

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

Domestic: (877) 450-3867

International: (706) 643-0958

Conference ID: 5294515

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

Domestic: (855) 859-2056

International: (404) 537-3406

Conference ID: 5294515

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. 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, 2017 and the Company's other periodic reports and information filed with the Securities and Exchange Commission (the “SEC”). 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 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 December 31,				Twelve Months Ended December 31,
	2018		2017		2018		2017
	(Dollars and shares in thousands, except per share amounts)
Revenues:
New vehicles	$	1,319,587	$	1,485,749	$	4,974,097	$	5,295,051
Used vehicles	755,882		685,965		2,973,498		2,622,053
Wholesale vehicles	49,899		40,890		217,625		171,064
Total vehicles	2,125,368		2,212,604		8,165,220		8,088,168
Parts, service and collision repair	339,257		355,137		1,380,887		1,416,010
Finance, insurance and other, net	109,633		100,198		405,523		363,030
Total revenues	2,574,258		2,667,939		9,951,630		9,867,208
Cost of Sales:
New vehicles	(1,253,792)		(1,407,861)		(4,732,595)		(5,030,125)
Used vehicles	(722,291)		(651,074)		(2,830,510)		(2,467,150)
Wholesale vehicles	(52,069)		(43,224)		(228,874)		(179,778)
Total vehicles	(2,028,152)		(2,102,160)		(7,791,979)		(7,677,053)
Parts, service and collision repair	(175,391)		(181,690)		(713,526)		(732,479)
Total cost of sales	(2,203,543)		(2,283,850)		(8,505,505)		(8,409,532)
Gross profit	370,715		384,089		1,446,125		1,457,676
Selling, general and administrative expenses	(273,915)		(277,634)		(1,145,325)		(1,147,773)
Impairment charges	(15,553)		(6,079)		(29,514)		(9,394)
Depreciation and amortization	(22,556)		(23,192)		(93,623)		(88,944)
Operating income (loss)	58,691		77,184		177,663		211,565
Other income (expense):
Interest expense, floor plan	(13,585)		(9,982)		(48,398)		(36,395)
Interest expense, other, net	(13,914)		(13,324)		(54,059)		(52,524)
Other income (expense), net	—		(32)		106		(14,522)
Total other income (expense)	(27,499)		(23,338)		(102,351)		(103,441)
Income (loss) from continuing operations before taxes	31,192		53,846		75,312		108,124
Provision for income taxes for continuing operations - benefit (expense)	(9,212)		8,282		(22,922)		(13,971)
Income (loss) from continuing operations	21,981		62,128		52,390		94,153
Discontinued operations:
Income (loss) from discontinued operations before taxes	(221)		(293)		(1,017)		(1,942)
Provision for income taxes for discontinued operations - benefit (expense)	60		117		277		772
Income (loss) from discontinued operations	(161)		(176)		(740)		(1,170)
Net income (loss)	$	21,820	$	61,952	$	51,650	$	92,983
Basic earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.51	$	1.44	$	1.23	$	2.14
Earnings (loss) per share from discontinued operations	—		(0.01)		(0.02)		(0.03)
Earnings (loss) per common share	$	0.51	$	1.43	$	1.21	$	2.11
Weighted average common shares outstanding	42,710		43,156		42,708		43,997
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.51	$	1.42	$	1.22	$	2.12
Earnings (loss) per share from discontinued operations	—		—		(0.02)		(0.03)
Earnings (loss) per common share	$	0.51	$	1.42	$	1.20	$	2.09
Weighted average common shares outstanding	42,911		43,682		42,950		44,358
Dividends declared per common share	$	0.06	$	0.05	$	0.24	$	0.20

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Per Share Data

	Three Months Ended December 31, 2018
		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	42,710	$	21,981			$	(161)			$	21,820
Effect of participating securities:
Non-vested restricted stock		(21)				—				(21)
Basic earnings (loss) and shares	42,710	$	21,960	$	0.51	$	(161)	$	—	$	21,799	$	0.51
Effect of dilutive securities:
Stock compensation plans	201
Diluted earnings (loss) and shares	42,911	$	21,960	$	0.51	$	(161)	$	—	$	21,799	$	0.51
Adjustments:
Impairment charges		$	15,553			$	—			$	15,553
Lease exit adjustments		(800)				—				(800)
Total adjustments before taxes		14,753				—				14,753
Income tax effect of adjustments		(4,020)				—				(4,020)
Effect of adjustments, net of income taxes		$	10,733	$	0.25	$	—	$	—	$	10,733	$	0.25
Adjusted:
Earnings (loss) and diluted earnings (loss) per share (1)		$	32,714	$	0.76	$	(161)	$	—	$	32,553	$	0.76

(1) Net loss attributable to EchoPark was $0.08 per fully diluted share in the three months ended December 31, 2018.

	Three Months Ended December 31, 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	43,156	$	62,128			$	(176)			$	61,952
Effect of participating securities:
Non-vested restricted stock		(57)				—				(57)
Basic earnings (loss) and shares	43,156	$	62,071	$	1.44	$	(176)	$	(0.01)	$	61,895	$	1.43
Effect of dilutive securities:
Stock compensation plans	526
Diluted earnings (loss) and shares	43,682	$	62,071	$	1.42	$	(176)	$	—	$	61,895	$	1.42
Adjustments:
Impairment charges		$	6,080			$	—			$	6,080
Legal and storm damage adjustments		(1,153)				—				(1,153)
Long-term compensation-related charges		1,271				—				1,271
Gain on disposal of franchises		(1,507)				—				(1,507)
Total adjustments before taxes		4,691				—				4,691
Income tax effect of adjustments		(1,841)				—				(1,841)
Non-recurring tax items		(28,409)				—				(28,409)
Effect of adjustments, net of income taxes		$	(25,559)	$	(0.58)	$	—	$	(0.01)	$	(25,559)	$	(0.59)
Adjusted:
Earnings (loss) and diluted earnings (loss) per share (2)		$	36,569	$	0.84	$	(176)	$	(0.01)	$	36,393	$	0.83

(2) Net loss attributable to EchoPark was $0.04 per fully diluted share in the three months ended December 31, 2017.

	Twelve Months Ended December 31, 2018
		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	42,708	$	52,390			$	(740)			$	51,650
Effect of participating securities:
Non-vested restricted stock		(50)				—				(50)
Basic earnings (loss) and shares	42,708	$	52,340	$	1.23	$	(740)	$	(0.02)	$	51,600	$	1.21
Effect of dilutive securities:
Stock compensation plans	242
Diluted earnings (loss) and shares	42,950	$	52,340	$	1.22	$	(740)	$	(0.02)	$	51,600	$	1.20
Adjustments:
Impairment charges		$	29,512			$	—			$	29,512
Legal and storm damage charges		5,749				—				5,749
Lease exit adjustments		1,435				—				1,435
Gain on disposal of franchises		(38,893)				—				(38,893)
Long-term compensation-related charges		32,522				—				32,522
Executive transition costs		1,581				—				1,581
Total adjustments before taxes		31,906				—				31,906
Income tax effect of adjustments		(8,694)				—				(8,694)
Non-recurring tax items		1,313				—				1,313
Effect of adjustments, net of income taxes		$	24,524	$	0.57	$	—	$	—	$	24,524	$	0.57
Adjusted:
Earnings (loss) and diluted earnings (loss) per share (3)		$	76,914	$	1.79	$	(740)	$	(0.02)	$	76,174	$	1.77

(3) Net loss attributable to EchoPark was $0.34 per fully diluted share in the twelve months ended December 31, 2018.

	Twelve Months Ended December 31, 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	43,997	$	94,153			$	(1,170)			$	92,983
Effect of participating securities:
Non-vested restricted stock		(85)				—				(85)
Basic earnings (loss) and shares	43,997	$	94,068	$	2.14	$	(1,170)	$	(0.03)	$	92,898	$	2.11
Effect of dilutive securities:
Stock compensation plans	361
Diluted earnings (loss) and shares	44,358	$	94,068	$	2.12	$	(1,170)	$	(0.03)	$	92,898	$	2.09
Adjustments:
Impairment charges		$	9,393			$	—			$	9,393
Legal and storm damage charges		9,628				—				9,628
Long-term compensation-related charges		1,271				—				1,271
Lease exit adjustments		992				—				992
Gain on disposal of franchises		(9,997)				—				(9,997)
Loss on debt extinguishment and double-carry interest		15,268				—				15,268
Total adjustments before taxes		26,555				—				26,555
Income tax effect of adjustments		(10,423)				—				(10,423)
Non-recurring tax items		(28,055)				—				(28,055)
Effect of adjustments, net of income taxes		$	(11,923)	$	(0.27)	$	—	$	0.01	$	(11,923)	$	(0.26)
Adjusted:
Earnings (loss) and diluted earnings (loss) per share (4)		$	82,230	$	1.85	$	(1,170)	$	(0.02)	$	81,060	$	1.83

(4) Net loss attributable to EchoPark was $0.26 per fully diluted share in the twelve months ended December 31, 2017.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

New Vehicles

	Three Months Ended December 31,						Better / (Worse)
	2018			2017			Change		% Change
	(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue	$	1,319,587		$	1,485,749		$	(166,162)	(11.2)	%
Gross profit	$	65,795		$	77,888		$	(12,093)	(15.5)	%
Unit sales	31,331			36,531			(5,200)		(14.2)	%
Revenue per unit	$	42,118		$	40,671		$	1,447	3.6	%
Gross profit per unit	$	2,100		$	2,132		$	(32)	(1.5)	%
Gross profit as a % of revenue	5.0		%	5.2		%	(20)		bps
	Twelve Months Ended December 31,						Better / (Worse)
	2018			2017			Change		% Change
	(In thousands, except unit and per unit data)
Reported new vehicle:
Revenue	$	4,974,097		$	5,295,051		$	(320,954)	(6.1)	%
Gross profit	$	241,502		$	264,926		$	(23,424)	(8.8)	%
Unit sales	122,717			135,663			(12,946)		(9.5)	%
Revenue per unit	$	40,533		$	39,031		$	1,502	3.8	%
Gross profit per unit	$	1,968		$	1,953		$	15	0.8	%
Gross profit as a % of revenue	4.9		%	5.0		%	(10)		bps
	Three Months Ended December 31,						Better / (Worse)
	2018			2017			Change		% Change
	(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue	$	1,318,755		$	1,414,121		$	(95,366)	(6.7)	%
Gross profit	$	65,215		$	75,428		$	(10,213)	(13.5)	%
Unit sales	31,314			34,402			(3,088)		(9.0)	%
Revenue per unit	$	42,114		$	41,106		$	1,008	2.5	%
Gross profit per unit	$	2,083		$	2,193		$	(110)	(5.0)	%
Gross profit as a % of revenue	4.9		%	5.3		%	(40)		bps
	Twelve Months Ended December 31,						Better / (Worse)
	2018			2017			Change		% Change
	(In thousands, except unit and per unit data)
Same store new vehicle:
Revenue	$	4,897,389		$	4,992,552		$	(95,163)	(1.9)	%
Gross profit	$	238,648		$	255,795		$	(17,147)	(6.7)	%
Unit sales	120,400			126,101			(5,701)		(4.5)	%
Revenue per unit	$	40,676		$	39,592		$	1,084	2.7	%
Gross profit per unit	$	1,982		$	2,028		$	(46)	(2.3)	%
Gross profit as a % of revenue	4.9		%	5.1		%	(20)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Used Vehicles

	Three Months Ended December 31,						Better / (Worse)
	2018			2017			Change		% Change
	(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue	$	755,882		$	685,965		$	69,917	10.2	%
Gross profit	$	33,591		$	34,891		$	(1,300)	(3.7)	%
Unit sales	35,135			31,740			3,395		10.7	%
Revenue per unit	$	21,514		$	21,612		$	(98)	(0.5)	%
Gross profit per unit	$	956		$	1,099		$	(143)	(13.0)	%
Gross profit as a % of revenue	4.4		%	5.1		%	(70)		bps
	Twelve Months Ended December 31,						Better / (Worse)
	2018			2017			Change		% Change
	(In thousands, except unit and per unit data)
Reported used vehicle:
Revenue	$	2,973,498		$	2,622,053		$	351,445	13.4	%
Gross profit	$	142,988		$	154,903		$	(11,915)	(7.7)	%
Unit sales	139,605			123,489			16,116		13.1	%
Revenue per unit	$	21,299		$	21,233		$	66	0.3	%
Gross profit per unit	$	1,024		$	1,254		$	(230)	(18.3)	%
Gross profit as a % of revenue	4.8		%	5.9		%	(110)		bps
	Three Months Ended December 31,						Better / (Worse)
	2018			2017			Change		% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue	$	711,830		$	647,963		$	63,867	9.9	%
Gross profit	$	30,837		$	32,079		$	(1,242)	(3.9)	%
Unit sales	32,880			29,619			3,261		11.0	%
Revenue per unit	$	21,649		$	21,877		$	(228)	(1.0)	%
Gross profit per unit	$	938		$	1,083		$	(145)	(13.4)	%
Gross profit as a % of revenue	4.3		%	5.0		%	(70)		bps
	Twelve Months Ended December 31,						Better / (Worse)
	2018			2017			Change		% Change
	(In thousands, except unit and per unit data)
Same store used vehicle:
Revenue	$	2,593,725		$	2,427,306		$	166,419	6.9	%
Gross profit	$	136,200		$	138,677		$	(2,477)	(1.8)	%
Unit sales	120,339			112,605			7,734		6.9	%
Revenue per unit	$	21,553		$	21,556		$	(3)	—	%
Gross profit per unit	$	1,132		$	1,232		$	(100)	(8.1)	%
Gross profit as a % of revenue	5.3		%	5.7		%	(40)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Wholesale Vehicles

	Three Months Ended December 31,						Better / (Worse)
	2018			2017			Change		% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	49,899		$	40,890		$	9,009	22.0	%
Gross profit	$	(2,170)		$	(2,334)		$	164	7.0	%
Unit sales	8,214			7,463			751		10.1	%
Revenue per unit	$	6,075		$	5,479		$	596	10.9	%
Gross profit per unit	$	(264)		$	(313)		$	49	15.7	%
Gross profit as a % of revenue	(4.3)		%	(5.7)		%	140		bps
	Twelve Months Ended December 31,						Better / (Worse)
	2018			2017			Change		% Change
	(In thousands, except unit and per unit data)
Reported wholesale vehicle:
Revenue	$	217,625		$	171,064		$	46,561	27.2	%
Gross profit	$	(11,249)		$	(8,714)		$	(2,535)	(29.1)	%
Unit sales	34,167			31,385			2,782		8.9	%
Revenue per unit	$	6,369		$	5,451		$	918	16.8	%
Gross profit per unit	$	(329)		$	(278)		$	(51)	(18.3)	%
Gross profit as a % of revenue	(5.2)		%	(5.1)		%	(10)		bps
	Three Months Ended December 31,						Better / (Worse)
	2018			2017			Change		% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	49,821		$	37,964		$	11,857	31.2	%
Gross profit	$	(2,118)		$	(1,992)		$	(126)	(6.3)	%
Unit sales	8,205			6,860			1,345		19.6	%
Revenue per unit	$	6,072		$	5,534		$	538	9.7	%
Gross profit per unit	$	(258)		$	(290)		$	32	11.0	%
Gross profit as a % of revenue	(4.3)		%	(5.2)		%	90		bps
	Twelve Months Ended December 31,						Better / (Worse)
	2018			2017			Change		% Change
	(In thousands, except unit and per unit data)
Same store wholesale vehicle:
Revenue	$	200,574		$	158,787		$	41,787	26.3	%
Gross profit	$	(11,215)		$	(7,455)		$	(3,760)	(50.4)	%
Unit sales	31,080			28,547			2,533		8.9	%
Revenue per unit	$	6,453		$	5,562		$	891	16.0	%
Gross profit per unit	$	(361)		$	(261)		$	(100)	(38.3)	%
Gross profit as a % of revenue	(5.6)		%	(4.7)		%	(90)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Three Months Ended December 31,						Better / (Worse)
	2018			2017			Change			% Change
	(In thousands)
Reported Fixed Operations:
Revenue
Customer pay	$	137,690		$	140,285		$	(2,595)		(1.8)	%
Warranty	68,425			69,771			(1,346)			(1.9)	%
Wholesale parts	38,302			41,445			(3,143)			(7.6)	%
Internal, sublet and other	94,840			103,636			(8,796)			(8.5)	%
Total	$	339,257		$	355,137		$	(15,880)		(4.5)	%
Gross profit
Customer pay	$	73,173		$	74,748		$	(1,575)		(2.1)	%
Warranty	38,411			38,273			138			0.4	%
Wholesale parts	6,797			7,149			(352)			(4.9)	%
Internal, sublet and other	45,485			53,277			(7,792)			(14.6)	%
Total	$	163,866		$	173,447		$	(9,581)		(5.5)	%
Gross profit as a % of revenue
Customer pay	53.1		%	53.3		%	(20)		bps
Warranty	56.1		%	54.9		%	120		bps
Wholesale parts	17.7		%	17.2		%	50		bps
Internal, sublet and other	48.0		%	51.4		%	(340)		bps
Total	48.3		%	48.8		%	(50)		bps
	Twelve Months Ended December 31,						Better / (Worse)
	2018			2017			Change			% Change
	(In thousands)
Reported Fixed Operations:
Revenue
Customer pay	$	560,037		$	555,463		$	4,574		0.8	%
Warranty	266,644			282,926			(16,282)			(5.8)	%
Wholesale parts	161,066			168,459			(7,393)			(4.4)	%
Internal, sublet and other	393,140			409,162			(16,022)			(3.9)	%
Total	$	1,380,887		$	1,416,010		$	(35,123)		(2.5)	%
Gross profit
Customer pay	$	299,616		$	296,834		$	2,782		0.9	%
Warranty	150,746			156,082			(5,336)			(3.4)	%
Wholesale parts	27,746			28,989			(1,243)			(4.3)	%
Internal, sublet and other	189,253			201,626			(12,373)			(6.1)	%
Total	$	667,361		$	683,531		$	(16,170)		(2.4)	%
Gross profit as a % of revenue
Customer pay	53.5		%	53.4		%	10		bps
Warranty	56.5		%	55.2		%	130		bps
Wholesale parts	17.2		%	17.2		%	—		bps
Internal, sublet and other	48.1		%	49.3		%	(120)		bps
Total	48.3		%	48.3		%	—		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Three Months Ended December 31,						Better / (Worse)
	2018			2017			Change			% Change
	(In thousands)
Same Store Fixed Operations:
Revenue
Customer pay	$	137,166		$	134,686		$	2,480		1.8	%
Warranty	68,607			66,823			1,784			2.7	%
Wholesale parts	38,295			40,015			(1,720)			(4.3)	%
Internal, sublet and other	94,026			98,065			(4,039)			(4.1)	%
Total	$	338,094		$	339,589		$	(1,495)		(0.4)	%
Gross profit
Customer pay	$	72,970		$	71,740		$	1,230		1.7	%
Warranty	38,526			36,647			1,879			5.1	%
Wholesale parts	6,797			6,906			(109)			(1.6)	%
Internal, sublet and other	45,483			50,458			(4,975)			(9.9)	%
Total	$	163,776		$	165,751		$	(1,975)		(1.2)	%
Gross profit as a % of revenue
Customer pay	53.2		%	53.3		%	(10)		bps
Warranty	56.2		%	54.8		%	140		bps
Wholesale parts	17.7		%	17.3		%	40		bps
Internal, sublet and other	48.4		%	51.5		%	(310)		bps
Total	48.4		%	48.8		%	(40)		bps
	Twelve Months Ended December 31,						Better / (Worse)
	2018			2017			Change			% Change
	(In thousands)
Same Store Fixed Operations:
Revenue
Customer pay	$	550,371		$	528,163		$	22,208		4.2	%
Warranty	263,814			268,800			(4,986)			(1.9)	%
Wholesale parts	159,004			160,691			(1,687)			(1.0)	%
Internal, sublet and other	377,480			383,326			(5,846)			(1.5)	%
Total	$	1,350,669		$	1,340,980		$	9,689		0.7	%
Gross profit
Customer pay	$	294,660		$	281,891		$	12,769		4.5	%
Warranty	147,507			148,237			(730)			(0.5)	%
Wholesale parts	27,429			27,702			(273)			(1.0)	%
Internal, sublet and other	183,927			187,709			(3,782)			(2.0)	%
Total	$	653,523		$	645,539		$	7,984		1.2	%
Gross profit as a % of revenue
Customer pay	53.5		%	53.4		%	10		bps
Warranty	55.9		%	55.1		%	80		bps
Wholesale parts	17.3		%	17.2		%	10		bps
Internal, sublet and other	48.7		%	49.0		%	(30)		bps
Total	48.4		%	48.1		%	30		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Three Months Ended December 31,				Better / (Worse)
	2018		2017		Change		% Change
	(In thousands, except per unit data)
Reported F&I:
Revenue	$	109,633	$	100,198	$	9,435	9.4	%
Unit Sales	66,102		68,015		(1,913)		(2.8)	%
Gross profit per retail unit (excludes fleet)	$	1,659	$	1,473	$	186	12.6	%
	Twelve Months Ended December 31,				Better / (Worse)
	2018		2017		Change		% Change
	(In thousands, except per unit data)
Reported F&I:
Revenue	$	405,523	$	363,030	$	42,493	11.7	%
Unit Sales	260,424		257,217		3,207		1.2	%
Gross profit per retail unit (excludes fleet)	$	1,557	$	1,411	$	146	10.3	%
	Three Months Ended December 31,				Better / (Worse)
	2018		2017		Change		% Change
	(In thousands, except per unit data)
Same Store F&I:
Revenue	$	101,966	$	91,981	$	9,985	10.9	%
Unit Sales	63,830		63,805		25		—	%
Gross profit per retail unit (excludes fleet)	$	1,597	$	1,442	$	156	10.8	%
	Twelve Months Ended December 31,				Better / (Worse)
	2018		2017		Change		% Change
	(In thousands, except per unit data)
Same Store F&I:
Revenue	$	356,589	$	331,288	$	25,301	7.6	%
Unit Sales	238,886		236,961		1,925		0.8	%
Gross profit per retail unit (excludes fleet)	$	1,493	$	1,398	$	95	6.8	%

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Three Months Ended December 31,						Better / (Worse)
	2018			2017			Change			% Change
	(In thousands)
Reported:
Compensation	$	166,950		$	172,515		$	5,565		3.2	%
Advertising	16,196			15,116			(1,080)			(7.1)	%
Rent	13,753			17,713			3,960			22.4	%
Other	77,016			72,290			(4,726)			(6.5)	%
Total SG&A expenses	$	273,915		$	277,634		$	3,719		1.3	%
Adjustments:
Legal and storm damage adjustments	$	—		$	1,153
Long-term compensation-related charges	—			(1,271)
Lease exit adjustments	800			—
Gain on disposal of franchises	—			1,507
Total SG&A adjustments	$	800		$	1,389
Adjusted:
Total adjusted SG&A expenses	$	274,715		$	279,023		$	4,308		1.5	%
Reported:
SG&A expenses as a % of gross profit:
Compensation	45.0		%	44.9		%	(10)		bps
Advertising	4.4		%	3.9		%	(50)		bps
Rent	3.7		%	4.6		%	90		bps
Other	20.8		%	18.9		%	(190)		bps
Total SG&A expenses as a % of gross profit	73.9		%	72.3		%	(160)		bps
Adjustments:
Legal and storm damage adjustments	—		%	0.2		%
Long-term compensation-related charges	—		%	(0.3)		%
Lease exit adjustments	0.2		%	—		%
Gain on disposal of franchises	—		%	0.3		%
Total effect of adjustments	0.2		%	0.3		%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit	74.1		%	72.6		%	(150)		bps

Sonic Automotive, Inc.

Results of Operations (Unaudited)

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

	Twelve Months Ended December 31,						Better / (Worse)
	2018			2017			Change			% Change
	(In thousands)
Reported:
Compensation	$	725,022		$	692,935		$	(32,087)		(4.6)	%
Advertising	63,134			61,563			(1,571)			(2.6)	%
Rent	64,204			73,022			8,818			12.1	%
Other	292,965			320,253			27,288			8.5	%
Total SG&A expenses	$	1,145,325		$	1,147,773		$	2,448		0.2	%
Adjustments:
Legal and storm damage charges	$	(5,749)		$	(9,628)
Long-term compensation-related charges	(32,522)			(1,271)
Executive transition costs	(1,581)			—
Lease exit adjustments	(1,435)			(992)
Gain on disposal of franchises	38,893			9,997
Total SG&A adjustments	$	(2,394)		$	(1,894)
Adjusted:
Total adjusted SG&A expenses	$	1,142,931		$	1,145,879		$	2,948		0.3	%
Reported:
SG&A expenses as a % of gross profit:
Compensation	50.1		%	47.5		%	(260)		bps
Advertising	4.4		%	4.2		%	(20)		bps
Rent	4.4		%	5.0		%	60		bps
Other	20.3		%	22.0		%	170		bps
Total SG&A expenses as a % of gross profit	79.2		%	78.7		%	(50)		bps
Adjustments:
Legal and storm damage charges	(0.5)		%	(0.5)		%
Long-term compensation-related charges	(2.7)		%	(0.1)		%
Executive transition costs	(0.1)		%	—		%
Lease exit adjustments	(0.1)		%	(0.1)		%
Gain on disposal of franchises	3.2		%	0.5		%
Total effect of adjustments	(0.2)		%	(0.1)		%
Adjusted:
Total adjusted SG&A expenses as a % of gross profit	79.0		%	78.6		%	(40)		bps

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

EX-99.2

Exhibit 99.2 Q4 2018 Investor Presentation

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 2018 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 stockholders, 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, 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, 2017 and the Company's other periodic reports and information filed with the Securities and Exchange Commission. 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, except as required under federal securities laws and the rules and regulations of the Securities and Exchange Commission. 2

CONTENT • COMPANY OVERVIEW • FINANCIAL & OPERATIONS REVIEW • OUTLOOK 3

COMPANY OVERVIEW 4

OVERVIEW – FRANCHISED GEOGRAPHIC Headquartered in Charlotte, NC 96 Stores, 23 Brands, 15 Collision Repair Centers 5 Platforms in Major Metro Markets

OVERVIEW – ECHOPARK GEOGRAPHIC - CO • Have purchased property in the following markets (some are under construction): ◦ Dallas/Ft. Worth ◦ San Antonio ◦ Houston ◦ Austin ◦ Carolinas Colorado Springs 6

OVERVIEW – ECHOPARK GEOGRAPHIC - TX Houston Location Opened in Q4 • Grand Prairie Location - Relocated driversselect 2018 Operation (purchased in Q3 2017) • West San Antonio Location Opened in Q4 2017 • New Braunfels Location Opened in Q1 2018 7

OVERVIEW – ECHOPARK GEOGRAPHIC - NC • Opened October 8 • Velocity of Sales Increasing Compared to Other New Openings 8

OVERVIEW - GEOGRAPHIC SC VA 2% 3% NV MD 2% 3% GA OH 3% 3% CA NC 28% 4% AL 5% Concentration in Major Metro FL Markets 6% TN 7% CO TX 8% 27% 9 Note: Percentages are percent of total revenue for FY 2018.

OVERVIEW - BRAND COMPOSITION New Retail Revenue & Overall Revenue Mix Other Lux Revenue streams and 7% brand mix offer attractive VW Other Non-Lux BMW 2% diversification across 3% 20% the automotive retail Cadillac space. Land Rover 2% F&I and 4% Fixed Other 4% Operations GM 14% 5% New Vehicles Ford 50% 6% Used Honda Vehicles 17% 32% Lexus 6% Audi 7% Mercedes Toyota 11% Note: Percentages are for FY 2018. 10% 10

Q4 2018 FINANCIAL REVIEW FRANCHISED SEGMENT 11

FRANCHISED SEGMENT Q4 2018 RESULTS B/(W) than Q4 2017 (1) (amounts in millions, except per share data) Q4 2018 (1) $ % Revenue $ 2,372 $ (190) (7.4)% Gross Profit $ 354 $ (19) (5.1)% SG&A $ 256 $ 10 3.9 % SG&A as % of Gross 72.5% (90) bps Depreciation $ 20 $ 1 6.8 % Operating Profit $ 77 $ (7) (8.4)% Interest & Other $ (26) $ (4) (16.4)% Pre-tax $ 51 $ (11) (17.6)% Diluted EPS $ 0.87 $ (0.01) (1.1)% Lower Operating Profit and Higher Interest Offset Benefits from Tax Rate Change (1) – Q4 2018 & Q4 2017 results are adjusted - See appendix for reconciliation to GAAP amounts. 12

NEW VEHICLE SAAR 19.0 Hurricane Harvey Q4 2018 17.6M vs 17.8M Q4 2017 18.5 18.5 Full Year 2018 – 17.2M Full Year 2017 – 17.2M 18.0 17.8 17.5 17.5 17.4 17.4 17.0 16.5 16.4 16.4 16.4 16.4 16.5 16.4 16.0 15.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 2018 2019 Forecast 13

NEW VEHICLE SAAR - RETAIL 16.0 Hurricane Harvey 15.5 15.5 Full Year 2018 – 13.6M Full Year 2017 – 13.9M 14.9 15.0 14.5 14.2 14.3 14.0 13.8 13.4 13.5 13.0 13.2 13.3 13.0 13.0 13.0 13.0 12.5 12.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 2018 2019 Forecast 14

NEW VEHICLE SAME STORE - Franchised Q4 2018 Q4 2017 B/(W) New Volume 31,314 34,402 (9.0)% Selling Price $ 42,114 $ 41,106 2.5% Gross Margin % 4.9% 5.3% (40) bps GPU $ 2,083 $ 2,193 $ (110) Gross Profit (millions) $ 65.2 $ 75.4 (13.5)% Retail SAAR (millions) 13.7 14.2 (3.5)% New Units Oct Nov Dec Total 2018 9,175 9,720 12,419 31,314 2017 10,165 10,708 13,529 34,402 B/(W) (990) (988) (1,110) (3,088) % B/(W) (9.7)% (9.2)% (8.2)% (9.0)% 15

NEW VEHICLE – GROSS, UNIT & GPU TREND Continuing Operations - Franchised ▪ Gross $ (in millions) ▪Units $2,132 $2,070 $2,078 $2,100 $1,988 $1,950 $1,909 $1,911 $1,925 $1,886 $1,866 $1,855 $78 $74 $1,730 $74 $66 $66 $66 $62 $63 $62 $58 $58 $57 $57 35,856 36,054 35,562 35,489 36,531 33,782 33,148 31,331 30,605 30,495 29,500 30,877 31,009 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Gross Per Unit 16

DAYS' SUPPLY 80 71 70 66 62 59 60 52 50 47 40 36 35 37 35 36 33 34 35 30 32 30 30 28 26 20 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 New Used - Fran Used - EP Parts 17

USED VEHICLE RETAIL Franchised – Same Store Q4 2018 Q4 2017 B/(W) Retail Volume 26,345 25,819 2.0% GPU $ 1,219 $ 1,201 $ 18 Used to New 84.0% 75.0% 900 bps Vehicles/Store/Month (96 stores) 92 91 1 Front-End Gross and F&I (in millions) Oct Nov Dec Total 2018 $ 23.1 $ 21.8 $ 27.4 $ 72.3 2017 22.0 21.6 24.1 67.7 B/(W) $ 1.0 $ 0.2 $ 3.3 $ 4.5 18

F&I – GROSS & GPU Franchised – Same Store Gross $ (in millions) GPU$ $88 ▪ ▪ $85 $1,528 $1,422 Q4 2018 Q4 2017 19

FIXED OPERATIONS Franchised – Same Store (amounts in millions) Q4 2018 Q4 2017 B/(W) Revenue $ 336 $ 336 0.0% Gross Profit $ 164 $ 164 (0.3)% 20

FIXED OPERATIONS GROSS Franchised – Same Store (amounts in millions) Q4 2018 Q4 2017 $ B/(W) % B/(W) Customer Pay $ 72,952 $ 71,664 $ 1,288 1.8 % Warranty 38,526 36,647 1,879 5.1 % Wholesale Parts 6,797 6,906 (109) (1.6)% Internal, Sublet & Other 45,607 49,081 (3,474) (7.1)% Total Gross Profit $ 163,882 $ 164,298 $ (416) (0.3)% 21

Q4 2018 FINANCIAL REVIEW ECHOPARK SEGMENT 22

ECHOPARK SEGMENT Q4 2018 RESULTS B/(W) than Q4 2017 (1) (amounts in millions, except per share, unit and per unit data) Q4 2018 (1) $ % Revenue $ 202.6 $ 96.3 90.5 % Gross Profit $ 17.2 $ 5.7 49.4 % SG&A $ 18.5 $ (6.2) (49.9)% SG&A as % of Gross 108.0% (40) bps Depreciation Expense $ 2.2 $ (0.9) (63.0)% Operating Profit $ (3.6) $ (1.3) (60.6)% Interest & Other $ (1.1) $ (0.4) (63.7)% Pre-tax $ (4.7) $ (1.8) (61.3)% Diluted EPS $ (0.08) $ (0.04) (100.0)% Retail Units 8,762 4,266 94.9 % Total Front-End Gross and F&I Gross per Unit Retailed $ 1,997 $ (140) (6.5)% • Continue to Drive Top-Line Revenue and Gross Growth • Total Per Unit Gross Decline Driven by Front-End - Down $498, F&I Up $359 (1) – Q4 2018 & Q4 2017 results are adjusted - See appendix for reconciliation to GAAP amounts. 23

Q4 2018 FINANCIAL REVIEW TOTAL ENTERPRISE 24

CONSOLIDATED Q4 2018 RESULTS B/(W) than Q4 2017 (1) (amounts in millions, except per share data) Q4 2018 (1) $ % Revenue $ 2,574 $ (94) (3.5)% Gross Profit $ 371 $ (13) (3.5)% SG&A $ 275 $ 4 1.5 % SG&A as % of Gross 74.1% (150) bps Depreciation $ 23 $ 1 2.7 % Operating Profit $ 73 $ (8) (10.3)% Interest & Other $ (27) $ (4) (17.8)% Continuing Ops: Profit (after tax) $ 34 $ (2) (6.8)% Diluted EPS $ 0.79 $ (0.05) (6.0)% (1) – Q4 2018 & Q4 2017 results are adjusted - See appendix for reconciliation to GAAP amounts. 25

CONSOLIDATED Q4 2018 REVENUE & GROSS PROFIT B/(W) than Q4 2017 (amounts in millions, except unit and per unit data) Q4 2018 $ % New Revenue $ 1,320 $ (166) (11.2)% Used Retail Revenue $ 756 $ 70 10.2 % Fixed Operations Revenue $ 339 $ (16) (4.5)% F&I Revenue $ 110 $ 9 9.4 % Total Revenue $ 2,574 $ (94) (3.5)% New Gross $ 66 $ (12) (15.5)% - Units 31,331 (5,200) (14.2 )% - GPU $ 2,100 $ (32) (1.5 )% Used Retail Gross $ 34 $ (1) (3.7)% - Units 35,135 3,395 10.7 % - GPU $ 956 $ (143) (13.0 )% F&I Gross $ 110 $ 9 9.4 % - GPU $ 1,659 $ 185 12.6 % Fixed Operations Gross $ 164 $ (10) (5.5)% Total Gross $ 371 $ (13) (3.5)% 26

CONSOLIDATED Q4 2018 REVENUE & GROSS PROFIT - SAME STORE B/(W) than Q4 2017 (amounts in millions, except unit and per unit data) Q4 2018 $ % New Revenue $ 1,319 $ (95) (6.7)% Used Retail Revenue $ 712 $ 64 9.9 % Fixed Operations Revenue $ 338 $ (1) (0.4)% F&I Revenue $ 102 $ 10 10.9 % Total Revenue $ 2,520 $ (11) (0.4)% New Gross $ 65 $ (10) (13.5)% - Units 31,314 (3,088) (9.0 )% - GPU $ 2,083 $ (110) (5.0 )% Used Retail Gross $ 31 $ (1) (3.9)% - Units 32,880 3,261 11.0 % - GPU $ 938 $ (145) (13.4 )% F&I Gross $ 102 $ 10 10.9 % - GPU $ 1,597 $ 156 10.8 % Fixed Operations Gross $ 164 $ (2) (1.2)% Total Gross $ 360 $ (4) (1.0)% 27

Q4 2018 ADJUSTED SG&A TO GROSS 74.1% 72.6% 20.8% 19.5% 3.9% 4.6% 45.0% 44.6% 4.4% 3.9% Q4 2018 (1) Q4 2017 (1) Advertising Comp Rent Other (1) – Q4 2018 & Q4 2017 results are adjusted - See appendix for reconciliation to GAAP amounts. 28

Q4 2018 INTEREST EXPENSE B/(W) than Q4 2017 (amounts in millions) Q4 2018 $ % Floor Plan Interest Expense $ 14 $ (4) (36.1)% Interest Expense, Other $ 14 $ (1) (4.4)% Total Interest Expense $ 28 $ (5) (18.0)% 29

Q4 2018 DEPRECIATION EXPENSE B/(W) than Q4 2017 (amounts in millions) Q4 2018 $ % Depreciation Expense - Franchised $ 20 $ 1 6.8 % Depreciation Expense - EchoPark $ 2 $ (1) (63.0)% Total $ 22 $ — 2.7 % New EchoPark Texas Builds Driving Increase in Depreciation Expense 30

FY 2018 FINANCIAL REVIEW 31

FY 2018 FINANCIAL REVIEW FRANCHISED SEGMENT 32

FRANCHISED SEGMENT FY 2018 RESULTS B/(W) than FY 2017 (1) (amounts in millions, except per share data) FY 2018 (1) $ % Revenue $ 9,251 $ (361) (3.8)% Gross Profit $ 1,388 $ (42) (2.9)% SG&A $ 1,077 $ 30 2.7 % SG&A as % of Gross 77.6% (20) bps Depreciation $ 86 $ (2) (2.5)% Operating Profit $ 226 $ (14) (5.7)% Interest & Other $ (98) $ (12) (14.5)% Pre-tax $ 127 $ (26) (17.1)% Diluted EPS $ 2.16 $ 0.05 2.4 % Lower Operating Profit Driven by Gross and Depreciation Higher Interest Offset Benefits from Tax Rate Change (1) – FY 2018 & FY 2017 results are adjusted - See appendix for reconciliation to GAAP amounts. 33

FY 2018 FINANCIAL REVIEW ECHOPARK SEGMENT 34

ECHOPARK SEGMENT FY 2018 RESULTS B/(W) than FY 2017 (1) (amounts in millions, except per share, unit and per unit data) FY 2018 (1) $ % Revenue $ 700 $ 446 175.3 % Gross Profit $ 58 $ 30 109.5 % SG&A $ 66 $ (27) (70.0)% SG&A as % of Gross 114.3% 2,660 bps Operating Profit $ (16) $ 0 2.7 % Interest & Other $ (4) $ (2) (75.4)% Pre-tax $ (20) $ (1) (6.7)% Diluted EPS $ (0.34) $ (0.08) (30.8)% Retail Units 29,437 18,819 177.2 % Total Front and F&I Gross per Unit Retailed $ 1,880 $ (175) (8.5)% (1) – FY 2018 & FY 2017 results are adjusted - See appendix for reconciliation to GAAP amounts. 35

ECHOPARK RETAIL UNIT SALES GROWTH 36

FY 2018 FINANCIAL REVIEW TOTAL ENTERPRISE 37

CONSOLIDATED FY 2018 RESULTS B/(W) than FY 2017 (1) (amounts in millions, except per share data) FY 2018 (1) $ % Revenue $ 9,952 $ 84 0.9 % Gross Profit $ 1,446 $ (12) (0.8)% SG&A $ 1,143 $ 3 0.3 % SG&A as % of Gross 79.0% (40) bps Depreciation $ 94 $ (5) (5.3)% Operating Profit $ 210 $ (13) (6.0)% Interest & Other $ (102) $ (14) (16.1)% Continuing Ops: Profit (after tax) $ 78 $ (4) (4.8)% Diluted EPS $ 1.82 $ (0.03) (1.6)% (1) – FY 2018 & FY 2017 results are adjusted - See appendix for reconciliation to GAAP amounts. 38

CONSOLIDATED FY 2018 REVENUE & GROSS PROFIT B/(W) than FY 2017 (amounts in millions, except unit and per unit data) FY 2018 $ % New Revenue $ 4,906 $ (311) (6.0)% Used Retail Revenue $ 2,973 $ 351 13.4 % Fixed Operations Revenue $ 1,381 $ (35) (2.5)% F&I Revenue $ 406 $ 42 11.7 % Total Revenue $ 9,952 $ 84 0.9 % New Gross $ 241 $ (25) (9.4)% - Units 120,819 (12,909) (9.7 )% - GPU $ 1,991 $ 6 0.3 % Used Retail Gross $ 143 $ (12) (7.7)% - Units 139,605 16,116 13.1 % - GPU $ 1,024 $ (230) (18.3 )% F&I Gross $ 406 $ 42 11.7 % - GPU $ 1,557 $ 146 10.3 % Fixed Operations Gross $ 667 $ (16) (2.4)% Total Gross $ 1,446 $ (12) (0.8)% 39

FY 2018 ADJUSTED SG&A TO GROSS 79.0% 78.6% 22.5% 22.1% 4.3% 4.9% 47.8% 47.4% 4.4% 4.2% FY 2018 (1) FY 2017 (1) Advertising Comp Rent Other (1) – FY 2018 & FY 2017 results are adjusted - See appendix for reconciliation to GAAP amounts. 40

CONSOLIDATED FY 2018 INTEREST EXPENSE B/(W) than FY 2017 (1) (amounts in millions) FY 2018 $ % Floor Plan Interest Expense $ 48 $ (12) (33.0)% Interest Expense, Other $ 54 $ (2) (4.2)% Total Interest Expense $ 102 $ (14) (16.1)% (1) – FY 2017 results are adjusted - See appendix for reconciliation to GAAP amounts. 41

2018 CAPEX Estimated (amounts in millions) FY 2015 FY 2016 FY 2017 FY 2018 2019 Real Estate & Facility Related $ 138.1 $ 174.3 $ 199.3 $ 147.6 $ 103.0 All Other Cap Ex 34.3 31.9 35.0 16.0 20.0 Subtotal $ 172.4 $ 206.2 $ 234.3 $ 163.6 $ 123.0 Less: Mortgages (69.0) (103.3) (52.5) (21.1) — Total Cash Used - Cap Ex $ 103.4 $ 102.9 $ 181.8 $ 142.5 $ 123.0 42

DEBT COVENANTS Covenant Q4 2018 Liquidity Ratio >= 1.05 1.10 Fixed Charge Coverage Ratio >= 1.20 1.43 Total Lease Adjusted Leverage Ratio <= 5.75 5.25 Compliant with all Covenants 43

ADJUSTED EBITDA (amounts in thousands) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net Income $ 31,548 $ 89,929 $ 76,254 $ 89,101 $ 81,618 $ 97,217 $ 86,311 $ 93,193 $ 92,983 $ 51,650 Non-Floor plan Interest 67,735 68,604 63,576 58,453 55,356 52,269 49,524 48,034 50,531 52,049 Depreciation & Amortization 57,036 45,827 51,164 52,616 58,139 62,161 72,130 81,034 92,127 96,652 Income Taxes (53,900) (19,745) 46,907 47,648 43,386 62,346 55,962 59,899 13,198 22,645 Stock Compensation 1,931 2,814 3,698 5,160 7,208 7,675 9,814 11,165 11,119 11,853 Lease Exit Charges 33,013 4,266 4,384 4,286 2,915 302 1,848 1,386 2,157 1,709 Impairment 30,038 249 1,151 950 9,872 6,594 17,955 8,063 9,394 29,514 Loss (Gain) on Debt Extinguishment 6,745 7,665 1,107 19,713 28,238 — — (6) 14,607 — Long-Term Compensation Arrangements — — — — — — — — — 32,522 Loss (Gain) on Dealership Disposal 102 (2,615) 386 (10,343) 457 (11,279) (2,748) 48 (9,980) (39,307) Adjusted EBITDA $174,248 $196,994 $248,627 $267,584 $287,189 $277,285 $290,796 $302,816 $276,136 $259,287 44

SHARE REPURCHASES Shares $/Share $ Availability (amounts in thousands, except share and per share data) EOY - 2017 $ 107,686 Q1 Activity 1,153 $ 20.35 $ 23,468 $ (23,468) Q2 Activity — — — — Q3 Activity 32 $ 19.95 $ 643 $ (643) Q4 Activity — — — — Total 2018 Activity 1,186 $ 20.34 $ 24,111 $ 83,575 45

APPENDIX 46

NON-GAAP RECONCILIATIONS Three Months Ended December 31, 2018 Three Months Ended December 31, 2017 Continuing Operations Continuing Operations Franchised Franchised Dealerships EchoPark Consolidated Dealerships EchoPark Consolidated Reported: Diluted earnings (loss) per share $ 0.62 $ (0.11) $ 0.51 $ 1.48 $ (0.06) $ 1.42 Adjustments: Impairment charges 0.23 0.03 0.26 0.08 — 0.08 Legal and storm damage adjustments — — — (0.02) 0.02 — Gain on disposal of franchises — — — (0.01) — (0.01) Lease exit adjustments (0.01) — (0.01) — — — Non-recurring tax items — — — (0.65) — (0.65) Effect of adjustments 0.22 0.03 0.25 (0.60) 0.02 (0.58) Adjusted: Diluted earnings (loss) per share $ 0.84 $ (0.08) $ 0.76 $ 0.88 $ (0.04) $ 0.84 47

NON-GAAP RECONCILIATIONS Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 Continuing Operations Continuing Operations Franchised Franchised Dealerships EchoPark Consolidated Dealerships EchoPark Consolidated Reported: Diluted earnings (loss) per share $ 2.14 $ (0.92) $ 1.22 $ 2.43 $ (0.31) $ 2.12 Adjustments: Impairment charges 0.47 0.03 0.50 0.10 0.03 0.13 Legal and storm damage charges 0.10 — 0.10 0.14 0.01 0.15 Long-term compensation-related charges — 0.55 0.55 — — — Executive transition costs 0.03 — 0.03 — — — Gain on disposal of franchises (0.66) — (0.66) (0.14) — (0.14) Lease exit adjustments 0.02 — 0.02 — 0.01 0.01 Loss on debt extinguishment — — — 0.21 — 0.21 Non-recurring tax items 0.03 — 0.03 (0.63) — (0.63) Effect of adjustments (0.01) 0.58 0.57 (0.32) 0.05 (0.27) Adjusted: Diluted earnings (loss) per share $ 2.13 $ (0.34) $ 1.79 $ 2.11 $ (0.26) $ 1.85 48

NON-GAAP RECONCILIATIONS Consolidated Franchised Dealerships EchoPark Three Months Ended Three Months Ended Three Months Ended December 31, December 31, December 31, Continuing Operations 2018 2017 2018 2017 2018 2017 (In millions) Reported: SG&A expenses $ 273.9 $ 277.6 $ 255.4 $ 263.8 $ 18.5 $ 13.8 Adjustments (before income taxes): Legal and storm damage adjustments — 1.2 — 1.4 — (0.2) Long-term compensation-related charges — (1.3) — — — (1.3) Lease exit adjustments 0.8 — 0.8 — — — Gain on disposal of franchises — 1.5 — 1.5 — — Total SG&A adjustments 0.8 1.4 0.8 2.9 — (1.5) Adjusted: SG&A expenses $ 274.7 $ 279.0 $ 256.2 $ 266.7 $ 18.5 $ 12.3 Reported: SG&A expenses as a % of gross profit 73.9% 72.3 % 72.2% 70.8% NM NM Adjustments (before income taxes): Legal and storm damage adjustments 0.0% 0.3 % 0.0% 0.3% — — Long-term compensation-related charges 0.0% (0.3)% 0.0% 0.0% — — Lease exit adjustments 0.2% 0.0 % 0.3% 0.0% — — Gain on disposal of franchises 0.0% 0.3 % 0.0% 0.5% — — Total SG&A adjustments 0.2% 0.3 % 0.3% 0.8% — — Adjusted: SG&A expenses as a % of gross profit 74.1% 72.6 % 72.5% 71.6% NM NM NM = Not meaningful 49

NON-GAAP RECONCILIATIONS Consolidated Franchised Dealerships EchoPark Three Months Ended Three Months Ended Three Months Ended December 31, December 31, December 31, Continuing Operations 2018 2017 2018 2017 2018 2017 (In millions) Reported: Operating income $ 58.7 $ 77.2 $ 63.8 $ 81.1 $ (5.1) $ (3.9) Adjustments (before income taxes): SG&A expenses (0.8) (1.4) (0.8) (2.9) — 1.5 Impairment charges 15.6 6.1 14.1 5.9 1.5 0.2 Total adjustments before taxes 14.8 4.7 13.3 3.0 1.5 1.7 Adjusted: Operating income $ 73.5 $ 81.9 $ 77.1 $ 84.1 $ (3.6) $ (2.2) Reported: Income (loss) from continuing operations before taxes $ 31.2 $ 53.8 $ 37.4 $ 58.4 $ (6.2) $ (4.6) Adjustments (before income taxes): SG&A expenses (0.8) (1.4) (0.8) (2.9) — 1.5 Impairment charges 15.6 6.1 14.1 5.9 1.5 0.2 Total adjustments before taxes 14.8 4.7 13.3 3.0 1.5 1.7 Adjusted: Income (loss) from continuing operations before taxes $ 46.0 $ 58.5 $ 50.7 $ 61.4 $ (4.7) $ (2.9) Reported: Income (loss) from continuing operations $ 22.0 $ 62.1 Total adjustments before taxes 14.8 4.7 Tax effect of above items (4.1) (1.8) Non-recurring tax items — (28.4) Impact on income (loss) from continuing operations 10.7 (25.5) Adjusted: Income (loss) from continuing operations $ 32.7 $ 36.6 50

NON-GAAP RECONCILIATIONS Consolidated Franchised Dealerships EchoPark Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, December 31, December 31, Continuing Operations 2018 2017 2018 2017 2018 2017 (In millions) Reported: SG&A expenses $ 1,145.3 $ 1,147.8 $ 1,046.4 $ 1,106.6 $ 98.9 $ 41.2 Adjustments (before income taxes): Legal and storm damage charges (5.7) (9.6) (5.7) (9.4) — (0.2) Long-term compensation-related charges (32.5) (1.3) — — (32.5) (1.3) Executive transition costs (1.6) — (1.6) — — Lease exit adjustments (1.4) (1.0) (1.4) (0.3) — (0.7) Gain on disposal of franchises 38.9 10.0 38.9 10.0 — — Total SG&A adjustments (2.4) (1.9) 30.2 0.3 (32.5) (2.2) Adjusted: SG&A expenses $ 1,142.9 $ 1,145.9 $ 1,076.6 $ 1,106.9 $ 66.4 $ 39.0 Reported: SG&A expenses as a % of gross profit 79.2 % 78.7 % 75.4 % 77.4% NM NM Adjustments (before income taxes): Legal and storm damage charges (0.5)% (0.5)% (0.4)% — — — Long-term compensation-related charges (2.7)% (0.1)% — — — — Executive transition costs (0.1)% — (0.1)% — — — Lease exit adjustments (0.1)% (0.1)% (0.1)% — — — Gain on disposal of franchises 3.2 % 0.5 % 2.8 % — — — Total SG&A adjustments (0.2)% (0.1)% 2.2 % — — — Adjusted: SG&A expenses as a % of gross profit 79.0 % 78.6 % 77.6 % 77.4% NM NM NM = Not meaningful 51

NON-GAAP RECONCILIATIONS Consolidated Franchised Dealerships EchoPark Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, December 31, December 31, Continuing Operations 2018 2017 2018 2017 2018 2017 (In millions) Reported: Operating income $ 177.7 $ 211.6 $ 227.9 $ 232.2 $ (50.2) $ (20.6) Adjustments (before income taxes): SG&A expenses 2.4 1.9 (30.1) (0.3) 32.5 2.2 Impairment charges 29.5 9.4 27.9 7.5 1.6 1.9 Total adjustments before taxes 31.9 11.3 (2.2) 7.2 34.1 4.1 Adjusted: Operating income $ 209.6 $ 222.9 $ 225.7 $ 239.4 $ (16.1) $ (16.5) Reported: Income (loss) from continuing operations before taxes $ 75.3 $ 108.1 $ 129.5 $ 131.0 $ (54.2) $ (22.9) Adjustments (before income taxes): SG&A expenses 2.4 1.9 (30.1) (0.3) 32.5 2.2 Impairment charges 29.5 9.4 27.9 7.5 1.6 1.9 Loss on debt extinguishment — 15.3 — 15.3 — — Total adjustments before taxes 31.9 26.6 (2.2) 22.5 34.1 4.1 Adjusted: Income (loss) from continuing operations before taxes $ 107.2 $ 134.7 $ 127.3 $ 153.5 $ (20.1) $ (18.8) Reported: Income (loss) from continuing operations $ 52.4 $ 94.2 Total adjustments before taxes 31.9 26.6 Tax Effect of above items (8.7) (10.5) Non-recurring tax items 1.3 (28.1) Impact on income (loss) from continuing operations 24.5 (12.0) Adjusted: 52 Income (loss) from continuing operations $ 76.9 $ 82.2

NON-GAAP RECONCILIATIONS Consolidated Consolidated Three Months Ended Twelve Months Ended December 31, December 31, Continuing Operations 2018 2017 2018 2017 (In millions) Reported: Interest Expense - Other $ 13.9 $ 13.3 $ 54.1 $ 52.5 Adjustments: Double-carry interest - 7.0% Notes — — — (0.7) Total other income adjustments — — — (0.7) Adjusted: Total Interest Expenses - Other $ 13.9 $ 13.3 $ 54.1 $ 51.8 Consolidated Consolidated Three Months Ended Twelve Months Ended December 31, December 31, Continuing Operations 2018 2017 2018 2017 (In millions) Reported: Other Expense / (Income) $ — $ — $ (0.1) $ 14.5 Adjustments: Loss on debt extinguishment — — — (14.6) Total other income adjustments — — — (14.6) Adjusted: Total Interest Expenses - Other $ — $ — $ (0.1) $ (0.1) 53

NON-GAAP RECONCILIATIONS Three Months Ended December 31, 2018 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 42,710 $ 21,981 $ (161) $ 21,820 Effect of participating securities: Non-vested restricted stock (21) — (21) Basic earnings (loss) and shares 42,710 $ 21,960 $ 0.51 $ (161) $ — $ 21,799 $ 0.51 Effect of dilutive securities: Stock compensation plans 201 Diluted earnings (loss) and shares 42,911 $ 21,960 $ 0.51 $ (161) $ — $ 21,799 $ 0.51 Adjustments: Impairment charges $ 15,553 $ — $ 15,553 Lease exit adjustments (800) — (800) Total adjustments before taxes 14,753 — 14,753 Income tax effect of adjustments (4,020) — (4,020) Effect of adjustments net of income taxes $ 10,733 $ 0.25 $ — $ — $ 10,733 $ 0.25 Adjusted: Earnings (loss) and diluted earnings (loss) per share (1) $ 32,714 $ 0.76 $ (161) $ — $ 32,553 $ 0.76 (1) Net loss attributable to EchoPark was $0.08 per fully diluted share in the three months ended December 31, 2018. 54

NON-GAAP RECONCILIATIONS Three Months Ended December 31, 2017 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 43,156 $ 62,128 $ (176) $ 61,952 Effect of participating securities: Non-vested restricted stock (57) — (57) Basic earnings (loss) and shares 43,156 $ 62,071 $ 1.44 $ (176) $ (0.01) $ 61,895 $ 1.43 Effect of dilutive securities: Stock compensation plans 526 Diluted earnings (loss) and shares 43,682 $ 62,071 $ 1.42 $ (176) $ — $ 61,895 $ 1.42 Adjustments: Impairment charges $ 6,080 $ — $ 6,080 Legal and storm damage adjustments (1,153) — (1,153) Long-term compensation-related charges 1,271 — 1,271 Gain on disposal of franchises (1,507) — (1,507) Total adjustments before taxes 4,691 — 4,691 Income tax effect of adjustments (1,841) — (1,841) Non-recurring tax items (28,409) — (28,409) Effect of adjustments, net of income taxes $ (25,559) $ (0.58) $ — $ (0.01) $ (25,559) $ (0.59) Adjusted: Earnings (loss) and diluted earnings (loss) per share (1) $ 36,569 $ 0.84 $ (176) $ (0.01) $ 36,393 $ 0.83 (1) Net loss attributable to EchoPark was $0.04 per fully diluted share in the three months ended December 31, 2017. 55

NON-GAAP RECONCILIATIONS Twelve Months Ended December 31, 2018 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 42,708 $ 52,390 $ (740) $ 51,650 Effect of participating securities: Non-vested restricted stock (50) (50) Basic earnings (loss) and shares 42,708 $ 52,340 $ 1.23 $ (740) $ (0.02) $ 51,600 $ 1.21 Effect of dilutive securities: Stock compensation plans 242 Diluted earnings (loss) and shares 42,950 $ 52,340 $ 1.22 $ (740) $ (0.02) $ 51,600 $ 1.20 Adjustments: Impairment charges $ 29,512 $ — $ 29,512 Legal and storm damage charges 5,749 — 5,749 Lease exit adjustments 1,435 — 1,435 Gain on disposal of franchises (38,893) — (38,893) Long-term compensation-related charges 32,522 — 32,522 Executive transition costs 1,581 — 1,581 Total adjustments before taxes 31,906 — 31,906 Income tax effect of adjustments (8,694) — (8,694) Non-recurring tax items 1,313 — 1,313 Effect of adjustments net of income taxes $ 24,524 $ 0.57 $ — $ — $ 24,524 $ 0.57 Adjusted: Earnings (loss) and diluted earnings (loss) per share (1) $ 76,914 $ 1.79 $ (740) $ (0.02) $ 76,174 $ 1.77 (1) Net loss attributable to EchoPark was $0.34 per fully diluted share in the twelve months ended December 31, 2018. 56

NON-GAAP RECONCILIATIONS Twelve Months Ended December 31, 2017 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 43,997 $ 94,153 $ (1,170) $ 92,983 Effect of participating securities: Non-vested restricted stock (85) — (85) Basic earnings (loss) and shares 43,997 $ 94,068 $ 2.14 $ (1,170) $ (0.03) $ 92,898 $ 2.11 Effect of dilutive securities: Stock compensation plans 361 Diluted earnings (loss) and shares 44,358 $ 94,068 $ 2.12 $ (1,170) $ (0.03) $ 92,898 $ 2.09 Adjustments: Impairment charges $ 9,393 $ — $ 9,393 Legal and storm damage charges 9,628 — 9,628 Long-term compensation-related charges 1,271 — 1,271 Lease exit adjustments 992 — 992 Gain on disposal of franchises (9,997) — (9,997) Loss on debt extinguishment and double-carry interest 15,268 — 15,268 Total adjustments before taxes 26,555 — 26,555 Income tax effect of adjustments (10,423) — (10,423) Non-recurring tax items (28,055) — (28,055) Effect of adjustments, net of income taxes $ (11,923) $ (0.27) $ — $ 0.01 $ (11,923) $ (0.26) Adjusted: Earnings (loss) and diluted earnings (loss) per share (1) $ 82,230 $ 1.85 $ (1,170) $ (0.02) $ 81,060 $ 1.83 (1) Net loss attributable to EchoPark was $0.26 per fully diluted share in the twelve months ended December 31, 2017. 57