Sonic Automotive (SAH) 8-K Sonic Automotive, Inc. Reports 21% Vehicle Revenue Growth; Adjusted Continuing Ops Profit Up 41% Over Prior Year Quarter

Exhibit 99.1

Sonic Automotive, Inc. Reports 21% Vehicle Revenue Growth;
Adjusted Continuing Ops Profit Up 41% Over Prior Year Quarter

CHARLOTTE, N.C. –July 29, 2010–Sonic Automotive, Inc. (NYSE: SAH), the nation’s third-largest automotive retailer, today reported that 2010 second quarter adjusted earnings from continuing operations were $15.6 million, up 41% from adjusted earnings from continuing operations in the same prior year period. On a per share basis, the Company earned an adjusted $0.27 per diluted share from continuing operations, compared to an adjusted $0.23 per diluted share from continuing operations in the same prior year quarter. The adjustments, which are related primarily to debt refinancing activities and mark-to-market adjustments on interest rate swaps, are detailed further in the attached tables. During the second quarter, the Company completed the retirement of $200 million of our 8.625% senior subordinated notes using proceeds from a debt offering that was completed in March 2010.

Business Overview – Revenue Growth In Every Business Line Over Q2 of Last Year

Commenting on the quarter, B. Scott Smith, the Company’s President, said, “We are pleased with the growth in both revenues and profits over the second quarter of last year. Our new vehicle business is up both sequentially and over the same period last year as we continue to see economic stabilization in certain segments of our geographic footprint. The growth in our used vehicle business continues to drive incremental revenue in our fixed operations and F&I departments. Our strategy for some time has been focused on standardizing our operating procedures through the rollout of our operational playbooks. Results this quarter demonstrate one of the primary benefits of our operational playbooks – they create growth opportunities not just in their specific area of the business but across all of our business lines.”

New and Used Vehicles – Revenue Increases 19% and 23%, Respectively

New vehicle retail revenue increased 19% and used vehicle retail revenue increased 23% for the second quarter of 2010 compared to the same quarter last year. Jeff Dyke, the Company’s EVP of Operations, stated, “We are pleased with our new vehicle growth, particularly given that our volume declines in 2009 were not as severe as what the overall industry experienced due to our favorable brand and geographic mix. Our dealerships continue to take market share and outperform the competition in their local markets. We are excited to announce that our New Car Playbook will be introduced to our stores later this year. We expect it to provide us many of the same successes that we have already received from our proven Used Vehicle Playbook. We also continue to be very pleased with our used vehicle volume growth especially when we consider the 20% growth comes on top of 12% growth in 2009. We continue to show that the used car business has tremendous upside potential as the second quarter was our largest used vehicle volume and gross profit quarter in our Company’s history.”

Service, Parts & Body Shop – Revenue and Gross Profit Both Increase

Sonic’s Service, Parts & Body Shop revenue for the second quarter was up approximately 5% compared to the prior year quarter, while gross profit dollars were up over 3%. Mr. Dyke stated, “Our operational strategies in parts and service are specifically designed to increase the non-warranty pieces of our business to respond to improved vehicle quality, fewer units in operation and changing warranty programs. We have seen consistent growth in both our customer pay business and in the revenues we earn for reconditioning work done on pre-owned vehicles.”

Presentation materials for the Company’s July 29, 2010 earnings conference call at 11:00 A.M. (Eastern) can be accessed on the Company’s website at www.sonicautomotive.com by clicking on the “For Investors” tab and choosing “Webcasts & Presentations” on the right side of the monitor.

To access the live broadcast of the call over the Internet go to: www.ccbn.com or www.sonicautomotive.com

A live audio of the call will be accessible to the public by calling (877) 791-3416. International callers dial (706) 643-0958. Callers should dial in approximately 10 minutes before the call begins.

A conference call replay will be available one hour following the call for seven days and can be accessed by calling: 800-642-1687, International callers dial (706) 645-9291 Conference ID: 86991682

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is the nation’s third-largest automotive retailer, operating 140 franchises. Sonic can be reached on the web at www.sonicautomotive.com.

Included herein are forward-looking statements, including statements with respect to economic stabilization and business improvement, future success and impacts from the implementation of our various operational playbooks, future cash flow generation, growth opportunities and future debt retirement. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management’s view, including without limitation, economic conditions in the markets in which we operate, new and used vehicle sales volume, the success of our operational strategies, the rate and timing of overall economic recovery or further decline and the risk factors described in the Company’s annual report on Form 10-K for the year ending December 31, 2009 and the quarterly report on Form 10-Q for the quarter ending March 31, 2010. The Company does not undertake any obligation to update forward-looking information.

Sonic Automotive, Inc.
Results of Operations (Unaudited)
(in thousands, except per share, unit data and percentage amounts)

	Three Months Ended									Three Months Ended
	As Reported						As Adjusted			As Reported						As Adjusted
	6/30/2010			Adjustments			6/30/2010			6/30/2009			Adjustments			6/30/2009
Revenues
New retail vehicles	$	848,610		$	—		$	848,610		$	711,083		$	—		$	711,083
Fleet vehicles		53,843			—			53,843			61,213			—			61,213
Total new vehicles		902,453			—			902,453			772,296			—			772,296
Used vehicles		470,365			—			470,365			382,091			—			382,091
Wholesale vehicles		30,111			—			30,111			33,903			—			33,903
Total vehicles		1,402,929			—			1,402,929			1,188,290			—			1,188,290
Parts, service and collision repair		287,095			—			287,095			274,032			—			274,032
Finance, insurance and other		45,985			—			45,985			38,847			—			38,847
Total revenues		1,736,009			—			1,736,009			1,501,169			—			1,501,169
Total gross profit		285,019			—			285,019			259,699			—			259,699
SG&A expenses		(228,372	)		647			(227,725	)		(205,767	)		—			(205,767	)
Impairment charges		(1	)					(1	)		(5,030	)		5,030			—
Depreciation		(8,675	)		—			(8,675	)		(8,183	)		—			(8,183	)
Operating income		47,971			647			48,618			40,719			5,030			45,749
Interest expense, floor plan		(5,507	)		—			(5,507	)		(5,492	)		—			(5,492	)
Interest expense, other, net		(15,683	)		519			(15,164	)		(23,216	)		6,712			(16,504	)
Interest expense, non-cash, convertible debt		(1,730	)		—			(1,730	)		(3,643	)		—			(3,643	)
Interest expense, non-cash, cash flow swaps		(2,235	)		2,235			—			(1,908	)		1,908			—
Other (expense) / income, net		(7,235	)		7,259			24			20			—			20
Income / (loss) from continuing operations before taxes		15,581			10,660			26,241			6,480			13,650			20,130
Income tax (expense) / benefit		(6,300	)		(4,310	)		(10,610	)		(2,916	)		(6,143	)		(9,059	)
Income / (loss) from continuing operations		9,281			6,350			15,631			3,564			7,507			11,071
Income / (Loss) from discontinued operations		(845	)		—			(845	)		(3,538	)		1,313			(2,225	)
Net income	$	8,436		$	6,350		$	14,786		$	26		$	8,820		$	8,846
Diluted:
Weighted average common shares outstanding		65,807			—			65,807			41,604			—			53,810
Earnings / (loss) per share from continuing operations	$	0.17		$	0.10		$	0.27		$	0.08		$	0.15		$	0.23
Earnings / (loss) per share from discontinued operations		(0.01	)		(0.01	)		(0.02	)		(0.08	)		0.04			(0.04	)
Cumulative effect of change in accounting principle
Earnings / (loss) per share	$	0.16		$	0.09		$	0.25		$	0.00		$	0.19		$	0.19
Gross Margin Data (Continuing Operations):
Retail new vehicles		7.1	%					7.1	%		7.0	%					7.0	%
Fleet vehicles		1.9	%					1.9	%		3.6	%					3.6	%
Total new vehicles		6.8	%					6.8	%		6.8	%					6.8	%
Used vehicles retail		7.7	%					7.7	%		8.1	%					8.1	%
Total vehicles retail		7.1	%					7.1	%		7.5	%					7.5	%
Wholesale vehicles		(6.1	%)					(6.1	%)		(3.7	%)					(3.7	%)
Parts, service and collision repair		49.9	%					49.9	%		50.6	%					50.6	%
Finance, insurance and other		100.0	%					100.0	%		100.0	%					100.0	%
Overall gross margin		16.4	%					16.4	%		17.3	%					17.3	%
SG&A Expenses (Continuing Operations):
Personnel	$	135,845		$	—		$	135,845		$	117,740		$	—		$	117,740
Advertising		12,964			—			12,964			11,220			—			11,220
Facility rent		32,717			—			32,717			32,132			—			32,132
Other		46,846			(647	)		46,199			44,675			—			44,675
Total	$	228,372		$	(647	)	$	227,725		$	205,767		$	—		$	205,767
SG&A Expenses as % of Gross Profit		80.1	%					79.9	%		79.2	%					79.2	%
Operating Margin %		2.8	%					2.8	%		2.7	%					3.0	%
Unit Data (Continuing Operations):
New retail units		24,854									21,574
Fleet units		2,272									2,572
New units		27,126									24,146
Used units		24,624									20,568
Total units retailed		51,750									44,714
Wholesale units		5,266									5,313
Other Data:
Same store revenue percentage changes:
New retail		19.3	%								(31.8	%)
Fleet		(12.0	%)								(47.7	%)
Total New Vehicles		16.9	%								(33.4	%)
Used		23.1	%								3.5	%
Parts, service and collision repair		4.8	%								(3.8	%)
Finance, insurance and other		18.4	%								(25.7	%)
Total		15.6	%								(22.9	%)

	2010			2009
Description of Adjustments:
Continuing Operations:
Hail damage	$	647		$	—
Debt restructuring		7,259			6,712
Cash flow swaps		2,235			1,908
Impairment charges		—			5,030
Double-carry interest		519			—
Total pretax	$	10,660		$	13,650
Tax effect		(4,310	)		(6,143	)
Total	$	6,350		$	7,507
Discontinued Operations:
Impairment charges	$	—		$	1,880
Tax effect		—			(567	)
Total	$	—		$	1,313

Sonic Automotive, Inc.
Results of Operations (Unaudited)
(in thousands, except per share, unit data and percentage amounts)

	Six Months Ended									Six Months Ended
	As Reported						As Adjusted			As Reported						As Adjusted
	6/30/2010			Adjustments			6/30/2010			6/30/2009			Adjustments			6/30/2009
Revenues
New retail vehicles	$	1,589,555		$	—		$	1,589,555		$	1,362,443		$	—		$	1,362,443
Fleet vehicles		97,495			—			97,495			115,376			—			115,376
Total new vehicles		1,687,050			—			1,687,050			1,477,819			—			1,477,819
Used vehicles		892,656			—			892,656			710,381			—			710,381
Wholesale vehicles		61,389			—			61,389			71,359			—			71,359
Total vehicles		2,641,095			—			2,641,095			2,259,559			—			2,259,559
Parts, service and collision repair		565,682			—			565,682			544,701			—			544,701
Finance, insurance and other		86,959			—			86,959			74,000			—			74,000
Total revenues		3,293,736			—			3,293,736			2,878,260			—			2,878,260
Total gross profit		553,343			—			553,343			506,672			—			506,672
SG&A expenses		(451,865	)		647			(451,218	)		(411,231	)		—			(411,231	)
Impairment charges		(45	)					(45	)		(5,087	)		5,087			—
Depreciation		(17,000	)		—			(17,000	)		(15,776	)		—			(15,776	)
Operating income		84,433			647			85,080			74,578			5,087			79,665
Interest expense, floor plan		(10,413	)		—			(10,413	)		(10,660	)		—			(10,660	)
Interest expense, other, net		(32,873	)		1,464			(31,409	)		(39,950	)		8,760			(31,190	)
Interest expense, non-cash, convertible debt		(3,406	)		—			(3,406	)		(6,262	)		—			(6,262	)
Interest expense, non-cash, cash flow swaps		(3,918	)		3,918			—			(3,179	)		3,179			—
Other (expense) / income, net		(7,171	)		7,259			88			70			—			70
Income / (loss) from continuing operations before taxes		26,652			13,288			39,940			14,597			17,026			31,623
Income tax (expense) / benefit		(11,061	)		(5,514	)		(16,575	)		(6,569	)		(7,662	)		(14,231	)
Income / (loss) from continuing operations		15,591			7,774			23,365			8,028			9,364			17,392
Income / (Loss) from discontinued operations		(3,001	)		—			(3,001	)		(6,324	)		2,392			(3,932	)
Net income	$	12,590		$	7,774		$	20,364		$	1,704		$	11,756		$	13,460
Diluted:
Weighted average common shares outstanding		52,749			—			65,639			40,974			—			47,111
Earnings / (loss) per share from continuing operations	$	0.29		$	0.13		$	0.42		$	0.19		$	0.20		$	0.39
Earnings / (loss) per share from discontinued operations		(0.05	)		—			(0.05	)		(0.15	)		0.07			(0.08	)
Cumulative effect of change in accounting principle
Earnings / (loss) per share	$	0.24		$	0.13		$	0.37		$	0.04		$	0.27		$	0.31
Gross Margin Data (Continuing Operations):
Retail new vehicles		7.1	%					7.1	%		6.9	%					6.9	%
Fleet vehicles		2.7	%					2.7	%		3.9	%					3.9	%
Total new vehicles		6.9	%					6.9	%		6.7	%					6.7	%
Used vehicles retail		7.8	%					7.8	%		8.7	%					8.7	%
Total vehicles retail		7.2	%					7.2	%		7.4	%					7.4	%
Wholesale vehicles		(4.1	%)					(4.1	%)		(1.8	%)					(1.8	%)
Parts, service and collision repair		50.1	%					50.1	%		50.1	%					50.1	%
Finance, insurance and other		100.0	%					100.0	%		100.0	%					100.0	%
Overall gross margin		16.8	%					16.8	%		17.6	%					17.6	%
SG&A Expenses (Continuing Operations):
Personnel	$	266,821		$	—		$	266,821		$	232,858		$	—		$	232,858
Advertising		24,294			—			24,294			22,115			—			22,115
Facility rent		66,328			—			66,328			65,111			—			65,111
Other		94,422			(647	)		93,775			91,147			—			91,147
Total	$	451,865		$	(647	)	$	451,218		$	411,231		$	—		$	411,231
SG&A Expenses as % of Gross Profit		81.7	%					81.5	%		81.2	%					81.2	%
Operating Margin %		2.6	%					2.6	%		2.6	%					2.8	%
Unit Data (Continuing Operations):
New retail units		46,440									41,168
Fleet units		4,022									4,827
New units		50,462									45,995
Used units		46,326									37,924
Total units retailed		96,788									83,919
Wholesale units		10,459									11,826
Other Data:
Same store revenue percentage changes:
New retail		16.7	%								(32.5	%)
Fleet		(15.5	%)								(47.9	%)
Total New Vehicles		14.2	%								(34.0	%)
Used		25.7	%								(2.2	%)
Parts, service and collision repair		3.9	%								(4.2	%)
Finance, insurance and other		17.5	%								(27.6	%)
Total		14.4	%								(24.3	%)

	2010			2009
Description of Adjustments:
Continuing Operations:
Hail damage	$	647		$	—
Debt restructuring		7,259			8,760
Cash flow swaps		3,918			3,179
Impairment charges		—			5,087
Double-carry interest		1,464			—
Total pretax	$	13,288		$	17,026
Tax effect		(5,514	)		(7,662	)
Total	$	7,774		$	9,364
Discontinued Operations:
Impairment charges	$	—		$	3,408
Tax effect		—			(1,016	)
Total	$	—		$	2,392