EX-12.1 3 d400531dex121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement regarding Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

SONIC AUTOMOTIVE, INC. AND SUBSIDIARIES

RATIO OF EARNINGS TO FIXED CHARGES

 

     Nine Months Ended
September 30,
    Year Ended December 31,  
(In thousands)    2012     2011     2011     2010     2009     2008     2007  

Fixed charges:

              

Interest expense, excluding floor plan interest

   $ 48,699      $ 54,117      $ 71,255      $ 79,032      $ 92,897      $ 72,417      $ 47,330   

Capitalized interest

     513        2,052        2,290        2,330        702        1,543        2,463   

Rent expense (interest factor)

     19,511        21,533        29,771        30,738        31,290        31,380        31,753   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

     68,723        77,702        103,316        112,100        124,889        105,340        81,546   

Income from continuing operations before income taxes and cumulative effect of change in accounting principle

     94,134        97,756        125,101        78,042        27,655        (756,917     169,404   

Add: Fixed charges

     68,723        77,702        103,316        112,100        124,889        105,340        81,546   

Less: Capitalized interest

     (513     (2,052     (2,290     (2,330     (702     (1,543     (2,463

Income from continuing operations before income taxes and cumulative effect of change in accounting principle & fixed charges

   $ 162,344      $ 173,406      $ 226,127      $ 187,812      $ 151,842      $ (653,120   $ 248,487   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges(1)

     2.4x        2.2 x        2.2 x        1.7 x        1.2 x      $ (758,460     3.0 x   

 

(1) Reflects deficiency of earnings available to cover fixed charges for the year ended December 31, 2008. Because of this deficiency, ratio information is not provided.