Exhibit 99.1
Sonic Automotive, Inc. Fourth Quarter 2010 Adjusted Earnings up $7.4 million or 74%; Vehicle Sales
Continue Double Digit Growth Trends
Continue Double Digit Growth Trends
CHARLOTTE, N.C. –February 22, 2011–Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported that 2010 fourth quarter earnings from continuing operations were $1.02 per diluted share compared to $0.46 per diluted share in the prior year quarter. On an adjusted basis, 2010 fourth quarter earnings from continuing operations were $0.30 per diluted share compared to $0.19 per diluted share in the prior year quarter. The adjustments for both periods, which include primarily impairment expenses and income tax benefits, are detailed further in the attached tables.
For the full year 2010, the Company reported earnings from continuing operations of $1.58 per diluted share compared to $1.07 per diluted share in the prior year. On an adjusted basis, full year earnings from continuing operations were $0.99 per diluted share compared to $0.81 per diluted share for the prior year period. The adjustments for both periods are detailed further in the attached tables.
Fourth Quarter 2010 Highlights
| • | Total revenues up 17% over prior year quarter | ||
| • | New vehicle volume up 18% | ||
| • | Used vehicle volume up 17%; Record annual volume and gross profit | ||
| • | Parts and Service revenue up 8%; Record annual gross profit |
Business Overview – Strong growth in all areas of the business
Commenting on the fourth quarter, B. Scott Smith, the Company’s President, said, “We are pleased with our operating results this quarter and proud of the way our dealerships are embracing our operating playbook best practices. Sonic Automotive benefited from an improved automotive retail environment and our ongoing focus on growing our core business. We continued to see significant growth in new and used vehicle sales in both our domestic and our luxury/import dealerships as our eCommerce and other advertising strategies continued to take effect. We capped off a very successful quarter in December by having the most profitable month in the history of our Company.”
New and Used Vehicles – New retail volume easily outpaces industry growth; Used volume continues double digit growth
Commenting on the Company’s vehicle sales, Jeff Dyke, the Company’s EVP of Operations noted, “The growth in our new vehicle business easily outpaced the overall industry growth of 13.5%. Our new vehicle retail revenue was up approximately 20% compared to the fourth quarter last year. We expect to see continued growth in this area as the industry continues its steady rebound and as we begin to introduce our new vehicle playbook in 2011.”
Relative to used vehicle sales, Mr. Dyke stated, “We are proud to be the used vehicle leader among the public franchised automobile dealer groups. Even with the double digit growth we’ve enjoyed for several years now, we believe significant future growth opportunities remain in this piece of our business as we continue to implement the more advanced stages of our strategy. The most exciting thing about the growth opportunities in new and used vehicles is the impact it has on the other areas of our business.”
Parts and Service – Revenues up 8%; Gross profit up 6%
Sonic’s parts and service revenue for the fourth quarter was up 8% compared with the prior year quarter. Mr. Dyke stated, “Our parts and service business continued the growth trend that we’ve seen all year. Our merchandising efforts, our focus on customer service, and the growth in our new and used vehicle business are helping us retain customers and grow our parts and service business.”
2011 Outlook
Scott Smith concluded his comments by stating, “We expect to see continued steady growth in the automotive retailing sector. We are targeting 2011 new vehicle industry volume of 12.5 million units. We currently expect earnings per share from continuing operations of between $1.18 and $1.28 for the full year 2011. We will have further comments on our 2011 outlook on our earnings call later today.”
Presentation materials for the Company’s February 22, 2011 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 “Investor Relations” tab under “Our Company” 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.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, Conference ID: 41490497, International callers dial (706) 645-9291.
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nation’s largest automotive retailers. Sonic can be reached on the web at www.sonicautomotive.com.
Included herein are forward-looking statements, including statements with respect to growth in new and used vehicle sales, future success and impacts from the implementation of our various operational playbooks, future new vehicle industry volume and expected earnings per share. 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 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 September 30, 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)
This release contains certain non-GAAP financial measures as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations, related earnings per share data and adjusted EBITDA. The Company has reconciled these measures to the most directly comparable GAAP measures in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure by providing period-to-period comparability of the Company’s results from operations.
| Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
| As Reported | As Adjusted | As Reported | As Adjusted | |||||||||||||||||||||||
| 12/31/2010 | Adjustments | 12/31/2010 | 12/31/2009 | Adjustments | 12/31/2009 | |||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| New retail vehicles | $ | 975,849 | $ | - | $ | 975,849 | $ | 811,914 | $ | - | $ | 811,914 | ||||||||||||||
| Fleet vehicles | 58,363 | - | 58,363 | 50,798 | - | 50,798 | ||||||||||||||||||||
| Total new vehicles | 1,034,212 | - | 1,034,212 | 862,712 | - | 862,712 | ||||||||||||||||||||
| Used vehicles | 437,258 | - | 437,258 | 370,015 | - | 370,015 | ||||||||||||||||||||
| Wholesale vehicles | 40,705 | - | 40,705 | 41,551 | - | 41,551 | ||||||||||||||||||||
| Total vehicles | 1,512,175 | - | 1,512,175 | 1,274,278 | - | 1,274,278 | ||||||||||||||||||||
| Parts, service and collision repair | 285,357 | - | 285,357 | 264,269 | - | 264,269 | ||||||||||||||||||||
| Finance, insurance and other | 47,361 | - | 47,361 | 38,138 | - | 38,138 | ||||||||||||||||||||
| Total revenues | 1,844,893 | - | 1,844,893 | 1,576,685 | - | 1,576,685 | ||||||||||||||||||||
| Total gross profit | 284,525 | - | 284,525 | 256,409 | - | 256,409 | ||||||||||||||||||||
| SG&A expenses | (224,155 | ) | - | (224,155 | ) | (209,660 | ) | 5,165 | (204,495 | ) | ||||||||||||||||
| Impairment charges | (117 | ) | 117 | - | (17,753 | ) | 17,753 | - | ||||||||||||||||||
| Depreciation | (9,381 | ) | - | (9,381 | ) | (11,014 | ) | 2,536 | (8,478 | ) | ||||||||||||||||
| Operating income | 50,872 | 117 | 50,989 | 17,982 | 25,454 | 43,436 | ||||||||||||||||||||
| Interest expense, floor plan | (5,921 | ) | - | (5,921 | ) | (4,887 | ) | - | (4,887 | ) | ||||||||||||||||
| Interest expense, other, net | (15,319 | ) | - | (15,319 | ) | (20,286 | ) | 2,833 | (17,453 | ) | ||||||||||||||||
| Interest expense, non-cash, convertible debt | (1,739 | ) | - | (1,739 | ) | (2,235 | ) | - | (2,235 | ) | ||||||||||||||||
| Interest expense / amortization, non-cash, cash flow swaps | 519 | (519 | ) | - | (6,410 | ) | 6,410 | - | ||||||||||||||||||
| Other income (expense), net | (3 | ) | - | (3 | ) | (9,196 | ) | 9,198 | 2 | |||||||||||||||||
| Income (loss) from continuing operations before taxes | 28,409 | (402 | ) | 28,007 | (25,032 | ) | 43,895 | 18,863 | ||||||||||||||||||
| Provision for income taxes — benefit (expense) | 37,409 | (48,006 | ) | (10,597 | ) | 53,091 | (61,965 | ) | (8,874 | ) | ||||||||||||||||
| Income (loss) from continuing operations | 65,818 | (48,408 | ) | 17,410 | 28,059 | (18,070 | ) | 9,989 | ||||||||||||||||||
| Income (loss) from discontinued operations | (1,464 | ) | 602 | (862 | ) | (13,809 | ) | 10,831 | (2,978 | ) | ||||||||||||||||
| Net income (loss) | $ | 64,354 | $ | (47,806 | ) | $ | 16,548 | $ | 14,250 | $ | (7,239 | ) | $ | 7,011 | ||||||||||||
| Diluted: | ||||||||||||||||||||||||||
| Weighted average common shares outstanding | 66,042 | - | 66,042 | 65,634 | - | 65,634 | ||||||||||||||||||||
| Earnings (loss) per share from continuing operations | $ | 1.02 | $ | (0.72 | ) | $ | 0.30 | $ | 0.46 | $ | (0.27 | ) | $ | 0.19 | ||||||||||||
| Earnings (loss) per share from discontinued operations | (0.02 | ) | - | (0.02 | ) | (0.21 | ) | 0.16 | (0.05 | ) | ||||||||||||||||
| Earnings (loss) per share | $ | 1.00 | $ | (0.72 | ) | $ | 0.28 | $ | 0.25 | $ | (0.11 | ) | $ | 0.14 | ||||||||||||
Gross Margin Data (Continuing Operations): | ||||||||||||||||||||||||||
| Retail new vehicles | 6.5 | % | 6.5 | % | 7.1 | % | 7.1 | % | ||||||||||||||||||
| Fleet vehicles | 3.5 | % | 3.5 | % | 3.1 | % | 3.1 | % | ||||||||||||||||||
| Total new vehicles | 6.3 | % | 6.3 | % | 6.9 | % | 6.9 | % | ||||||||||||||||||
| Used vehicles retail | 7.3 | % | 7.3 | % | 7.7 | % | 7.7 | % | ||||||||||||||||||
| Total vehicles retail | 6.6 | % | 6.6 | % | 7.1 | % | 7.1 | % | ||||||||||||||||||
| Wholesale vehicles | (2.7 | %) | (2.7 | %) | (6.4 | %) | (6.4 | %) | ||||||||||||||||||
| Parts, service and collision repair | 49.4 | % | 49.4 | % | 50.4 | % | 50.4 | % | ||||||||||||||||||
| Finance, insurance and other | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||
| Overall gross margin | 15.4 | % | 15.4 | % | 16.3 | % | 16.3 | % | ||||||||||||||||||
SG&A Expenses (Continuing Operations): | ||||||||||||||||||||||||||
| Personnel | $ | 130,676 | $ | - | $ | 130,676 | $ | 116,683 | $ | - | $ | 116,683 | ||||||||||||||
| Advertising | 10,463 | - | 10,463 | 11,802 | - | 11,802 | ||||||||||||||||||||
| Rent and rent related | 32,515 | - | 32,515 | 33,559 | (1,091 | ) | 32,468 | |||||||||||||||||||
| Other | 50,501 | - | 50,501 | 47,616 | (4,074 | ) | 43,542 | |||||||||||||||||||
| Total | $ | 224,155 | $ | - | $ | 224,155 | $ | 209,660 | $ | (5,165 | ) | $ | 204,495 | |||||||||||||
SG&A Expenses as % of Gross Profit | 78.8 | % | 78.8 | % | 81.8 | % | 79.8 | % | ||||||||||||||||||
Operating Margin % | 2.8 | % | 2.8 | % | 1.1 | % | 2.8 | % | ||||||||||||||||||
Unit Data (Continuing Operations): | ||||||||||||||||||||||||||
| New retail units | 27,011 | 22,882 | ||||||||||||||||||||||||
| Fleet units | 2,289 | 1,895 | ||||||||||||||||||||||||
| Total new units | 29,300 | 24,777 | ||||||||||||||||||||||||
| Used units | 21,429 | 18,338 | ||||||||||||||||||||||||
| Total units retailed | 50,729 | 43,115 | ||||||||||||||||||||||||
| Wholesale units | 6,501 | 6,636 | ||||||||||||||||||||||||
Other Data: | ||||||||||||||||||||||||||
| Continuing Operations revenue percentage changes: | ||||||||||||||||||||||||||
| New retail | 20.2 | % | 11.0 | % | ||||||||||||||||||||||
| Fleet | 14.9 | % | (10.7 | %) | ||||||||||||||||||||||
| Total New Vehicles | 19.9 | % | 9.5 | % | ||||||||||||||||||||||
| Used | 18.2 | % | 22.8 | % | ||||||||||||||||||||||
| Parts, service and collision repair | 8.0 | % | 0.0 | % | ||||||||||||||||||||||
| Finance, insurance and other | 24.2 | % | 11.9 | % | ||||||||||||||||||||||
| Total | 17.0 | % | 10.2 | % | ||||||||||||||||||||||
| Description of Adjustments: | 2010 | 2009 | ||||||||||||||||||||||||
| Continuing Operations: | ||||||||||||||||||||||||||
| Lease exit accruals | $ | - | $ | 1,091 | ||||||||||||||||||||||
| Franchise tax assessment | - | 2,924 | ||||||||||||||||||||||||
| Property impairment charges | 117 | 15,553 | ||||||||||||||||||||||||
| Franchise agreement impairment charges | - | 2,200 | ||||||||||||||||||||||||
| Cash-flow swap ineffectiveness and amortization | (519 | ) | 6,410 | |||||||||||||||||||||||
| Derivative mark-to-market | - | 1,150 | ||||||||||||||||||||||||
| Depreciation add-back | - | 2,536 | ||||||||||||||||||||||||
| Debt restructuring charges | - | 2,833 | ||||||||||||||||||||||||
| Loss on debt extinguishment | - | 9,198 | ||||||||||||||||||||||||
| Total pre-tax adjustments | $ | (402 | ) | 43,895 | ||||||||||||||||||||||
| Tax effect of above items | 152 | (20,651 | ) | |||||||||||||||||||||||
| Valuation allowance recovery | (48,158 | ) | (41,314 | ) | ||||||||||||||||||||||
| Total adjustments | $ | (48,408 | ) | $ | (18,070 | ) | ||||||||||||||||||||
| Discontinued Operations: | ||||||||||||||||||||||||||
| Lease exit accruals | $ | 859 | $ | 23,236 | ||||||||||||||||||||||
| Property impairment charges | - | 3,170 | ||||||||||||||||||||||||
| Total pre-tax adjustments | 859 | 26,406 | ||||||||||||||||||||||||
| Tax effect of above items | (257 | ) | (9,440 | ) | ||||||||||||||||||||||
| Valuation allowance recovery | - | (6,135 | ) | |||||||||||||||||||||||
| Total adjustments | $ | 602 | $ | 10,831 | ||||||||||||||||||||||
Sonic Automotive, Inc.
Results of Operations (Unaudited)
(In thousands, except per share, unit data and percentage amounts)
This release contains certain non-GAAP financial measures as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations, related earnings per share data and adjusted EBITDA. The Company has reconciled these measures to the most directly comparable GAAP measures in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosure by providing period-to-period comparability of the Company’s results from operations.
| Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
| As Reported | As Adjusted | As Reported | As Adjusted | ||||||||||||||||||||||
| 12/31/2010 | Adjustments | 12/31/2010 | 12/31/2009 | Adjustments | 12/31/2009 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||
| New retail vehicles | $ | 3,438,988 | $ | - | $ | 3,438,988 | $ | 3,014,960 | $ | - | $ | 3,014,960 | |||||||||||||
| Fleet vehicles | 207,212 | - | 207,212 | 214,988 | - | 214,988 | |||||||||||||||||||
| Total new vehicles | 3,646,200 | - | 3,646,200 | 3,229,948 | - | 3,229,948 | |||||||||||||||||||
| Used vehicles | 1,776,581 | - | 1,776,581 | 1,451,870 | - | 1,451,870 | |||||||||||||||||||
| Wholesale vehicles | 149,041 | - | 149,041 | 147,002 | - | 147,002 | |||||||||||||||||||
| Total vehicles | 5,571,822 | - | 5,571,822 | 4,828,820 | - | 4,828,820 | |||||||||||||||||||
| Parts, service and collision repair | 1,128,054 | - | 1,128,054 | 1,071,825 | - | 1,071,825 | |||||||||||||||||||
| Finance, insurance and other | 180,968 | - | 180,968 | 154,696 | - | 154,696 | |||||||||||||||||||
| Total revenues | 6,880,844 | - | 6,880,844 | 6,055,341 | - | 6,055,341 | |||||||||||||||||||
| Total gross profit | 1,114,678 | - | 1,114,678 | 1,032,672 | - | 1,032,672 | |||||||||||||||||||
| SG&A expenses | (896,697 | ) | 647 | (896,050 | ) | (829,220 | ) | 4,015 | (825,205 | ) | |||||||||||||||
| Impairment charges | (249 | ) | 249 | - | (23,460 | ) | 23,460 | - | |||||||||||||||||
| Depreciation | (35,110 | ) | - | (35,110 | ) | (34,879 | ) | - | (34,879 | ) | |||||||||||||||
| Operating income | 182,622 | 896 | 183,518 | 145,113 | 27,475 | 172,588 | |||||||||||||||||||
| Interest expense, floor plan | (21,536 | ) | - | (21,536 | ) | (19,812 | ) | - | (19,812 | ) | |||||||||||||||
| Interest expense, other, net | (63,343 | ) | 1,464 | (61,879 | ) | (78,284 | ) | 11,992 | (66,292 | ) | |||||||||||||||
| Interest expense, non-cash, convertible debt | (6,914 | ) | - | (6,914 | ) | (679 | ) | (11,300 | ) | (11,979 | ) | ||||||||||||||
| Interest expense / amortization, non-cash, cash flow swaps | (4,883 | ) | 4,883 | - | (11,769 | ) | 11,769 | - | |||||||||||||||||
| Other income (expense), net | (7,525 | ) | 7,665 | 140 | (6,677 | ) | 6,746 | 69 | |||||||||||||||||
| Income (loss) from continuing operations before taxes | 78,421 | 14,908 | 93,329 | 27,892 | 46,682 | 74,574 | |||||||||||||||||||
| Provision for income taxes — benefit (expense) | 17,504 | (53,985 | ) | (36,481 | ) | 29,275 | (61,464 | ) | (32,189 | ) | |||||||||||||||
| Income (loss) from continuing operations | 95,925 | (39,077 | ) | 56,848 | 57,167 | (14,782 | ) | 42,385 | |||||||||||||||||
| Income (loss) from discontinued operations | (5,996 | ) | 625 | (5,371 | ) | (25,619 | ) | 15,457 | (10,162 | ) | |||||||||||||||
| Net income (loss) | $ | 89,929 | $ | (38,452 | ) | $ | 51,477 | $ | 31,548 | $ | 675 | $ | 32,223 | ||||||||||||
| Diluted: | |||||||||||||||||||||||||
| Weighted average common shares outstanding | 65,794 | - | 65,794 | 55,832 | - | 55,832 | |||||||||||||||||||
| Earnings (loss) per share from continuing operations | $ | 1.58 | $ | (0.59 | ) | $ | 0.99 | $ | 1.07 | $ | (0.26 | ) | $ | 0.81 | |||||||||||
| Earnings (loss) per share from discontinued operations | (0.09 | ) | 0.01 | (0.08 | ) | (0.45 | ) | 0.27 | (0.18 | ) | |||||||||||||||
| Earnings (loss) per share | $ | 1.49 | $ | (0.58 | ) | $ | 0.91 | $ | 0.62 | $ | 0.01 | $ | 0.63 | ||||||||||||
Gross Margin Data (Continuing Operations): | |||||||||||||||||||||||||
| Retail new vehicles | 6.7 | % | 6.7 | % | 7.0 | % | 7.0 | % | |||||||||||||||||
| Fleet vehicles | 3.0 | % | 3.0 | % | 3.5 | % | 3.5 | % | |||||||||||||||||
| Total new vehicles | 6.5 | % | 6.5 | % | 6.8 | % | 6.8 | % | |||||||||||||||||
| Used vehicles retail | 7.9 | % | 7.9 | % | 8.5 | % | 8.5 | % | |||||||||||||||||
| Total vehicles retail | 6.9 | % | 6.9 | % | 7.3 | % | 7.3 | % | |||||||||||||||||
| Wholesale vehicles | (3.4 | %) | (3.4 | %) | (3.7 | %) | (3.7 | %) | |||||||||||||||||
| Parts, service and collision repair | 49.8 | % | 49.8 | % | 50.4 | % | 50.4 | % | |||||||||||||||||
| Finance, insurance and other | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||
| Overall gross margin | 16.2 | % | 16.2 | % | 17.1 | % | 17.1 | % | |||||||||||||||||
SG&A Expenses (Continuing Operations): | |||||||||||||||||||||||||
| Personnel | $ | 526,577 | $ | - | $ | 526,577 | $ | 470,293 | $ | - | $ | 470,293 | |||||||||||||
| Advertising | 46,908 | - | 46,908 | 44,736 | - | 44,736 | |||||||||||||||||||
| Rent and rent related | 130,739 | - | 130,739 | 131,262 | (1,091 | ) | 130,171 | ||||||||||||||||||
| Other | 192,473 | (647 | ) | 191,826 | 182,929 | (2,924 | ) | 180,005 | |||||||||||||||||
| Total | $ | 896,697 | $ | (647 | ) | $ | 896,050 | $ | 829,220 | $ | (4,015 | ) | $ | 825,205 | |||||||||||
SG&A Expenses as % of Gross Profit | 80.4 | % | 80.4 | % | 80.3 | % | 79.9 | % | |||||||||||||||||
Operating Margin % | 2.7 | % | 2.7 | % | 2.4 | % | 2.9 | % | |||||||||||||||||
Unit Data (Continuing Operations): | |||||||||||||||||||||||||
| New retail units | 98,820 | 90,664 | |||||||||||||||||||||||
| Fleet units | 8,331 | 8,697 | |||||||||||||||||||||||
| Total new units | 107,151 | 99,361 | |||||||||||||||||||||||
| Used units | 90,290 | 75,795 | |||||||||||||||||||||||
| Total units retailed | 197,441 | 175,156 | |||||||||||||||||||||||
| Wholesale units | 24,128 | 25,271 | |||||||||||||||||||||||
Other Data: | |||||||||||||||||||||||||
| Continuing Operations revenue percentage changes: | |||||||||||||||||||||||||
| New retail | 14.1 | % | (18.4 | %) | |||||||||||||||||||||
| Fleet | (3.6 | %) | (31.8 | %) | |||||||||||||||||||||
| Total New Vehicles | 12.9 | % | (19.4 | %) | |||||||||||||||||||||
| Used | 22.4 | % | 8.1 | % | |||||||||||||||||||||
| Parts, service and collision repair | 5.2 | % | (2.2 | %) | |||||||||||||||||||||
| Finance, insurance and other | 17.0 | % | (14.2 | %) | |||||||||||||||||||||
| Total | 13.6 | % | (12.2 | %) | |||||||||||||||||||||
| Description of Adjustments: | 2010 | 2009 | |||||||||||||||||||||||
| Continuing Operations: | |||||||||||||||||||||||||
| Hail storm related expenses | $ | 647 | $ | - | |||||||||||||||||||||
| Lease exit accruals | - | 1,091 | |||||||||||||||||||||||
| Franchise tax assessment | - | 2,924 | |||||||||||||||||||||||
| Property impairment charges | 249 | 18,066 | |||||||||||||||||||||||
| Goodwill impairment charges | - | 1,094 | |||||||||||||||||||||||
| Franchise agreement impairment charges | - | 4,300 | |||||||||||||||||||||||
| Cash-flow swap ineffectiveness and amortization | 4,883 | 11,769 | |||||||||||||||||||||||
| Derivative mark-to-market | - | (11,300 | ) | ||||||||||||||||||||||
| Debt restructuring charges | 1,464 | 11,992 | |||||||||||||||||||||||
| Loss on debt extinguishment | 7,665 | 6,746 | |||||||||||||||||||||||
| Total pre-tax adjustments | $ | 14,908 | $ | 46,682 | |||||||||||||||||||||
| Tax effect of above items | (5,827 | ) | (20,150 | ) | |||||||||||||||||||||
| Valuation allowance recovery | (48,158 | ) | (41,314 | ) | |||||||||||||||||||||
| Total adjustments | $ | (39,077 | ) | $ | (14,782 | ) | |||||||||||||||||||
| Discontinued Operations: | |||||||||||||||||||||||||
| Lease exit accruals | $ | 859 | $ | 27,586 | |||||||||||||||||||||
| Property impairment charges | - | 4,992 | |||||||||||||||||||||||
| Goodwill impairment charges | - | 1,586 | |||||||||||||||||||||||
| Total pre-tax adjustments | $ | 859 | $ | 34,164 | |||||||||||||||||||||
| Tax effect of above items | (234 | ) | (12,572 | ) | |||||||||||||||||||||
| Valuation allowance recovery | - | (6,135 | ) | ||||||||||||||||||||||
| Total adjustments | $ | 625 | $ | 15,457 | |||||||||||||||||||||
Sonic Automotive, Inc.
Earnings Per Share Reconciliation (Unaudited)
(In thousands, except per share data)
| For the Three Months Ended December 31, 2009 | ||||||||||||||||||||||||||||
| Income | Loss | |||||||||||||||||||||||||||
| From Continuing | From Discontinued | |||||||||||||||||||||||||||
| Operations | Operations | Net Income | ||||||||||||||||||||||||||
| Weighted | Per | Per | Per | |||||||||||||||||||||||||
| Average | Share | Share | Share | |||||||||||||||||||||||||
| Shares | Amount | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||
| Earnings (Loss) and Shares | 51,868 | $ | 28,059 | $ | 0.54 | $ | (13,809 | ) | $ | (0.27 | ) | $ | 14,250 | |||||||||||||||
| Effect of Participating Securities: | ||||||||||||||||||||||||||||
| Unvested Restricted Stock and Stock Units | - | (168 | ) | - | (168 | ) | ||||||||||||||||||||||
| Basic Earnings (Loss) Per Share | 51,868 | $ | 27,891 | $ | 0.54 | $ | (13,809 | ) | $ | (0.27 | ) | $ | 14,082 | $ | 0.27 | |||||||||||||
| Effect of Dilutive Securities: | ||||||||||||||||||||||||||||
| Contingently Convertible Debt ( 5.0% Convertible Notes) | 12,890 | 2,225 | 55 | 2,280 | ||||||||||||||||||||||||
| Stock Compensation Plans | 876 | |||||||||||||||||||||||||||
| Diluted Earnings (Loss) Per Share | 65,634 | $ | 30,116 | $ | 0.46 | $ | (13,754 | ) | $ | (0.21 | ) | $ | 16,362 | $ | 0.25 | |||||||||||||
| For the Three Months Ended December 31, 2010 | ||||||||||||||||||||||||||||
| Income | Loss | |||||||||||||||||||||||||||
| From Continuing | From Discontinued | |||||||||||||||||||||||||||
| Operations | Operations | Net Income | ||||||||||||||||||||||||||
| Weighted | Per | Per | Per | |||||||||||||||||||||||||
| Average | Share | Share | Share | |||||||||||||||||||||||||
| Shares | Amount | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||
| Earnings (Loss) and Shares | 52,401 | $ | 65,818 | $ | 1.26 | $ | (1,464 | ) | $ | (0.03 | ) | $ | 64,354 | |||||||||||||||
| Effect of Participating Securities: | ||||||||||||||||||||||||||||
| Unvested Restricted Stock and Stock Units | - | (630 | ) | - | (630 | ) | ||||||||||||||||||||||
| Basic Earnings (Loss) Per Share | 52,401 | $ | 65,188 | $ | 1.24 | $ | (1,464 | ) | $ | (0.02 | ) | $ | 63,724 | $ | 1.22 | |||||||||||||
| Effect of Dilutive Securities: | ||||||||||||||||||||||||||||
| Contingently Convertible Debt ( 5.0% Convertible Notes) | 12,890 | 2,313 | 3 | 2,316 | ||||||||||||||||||||||||
| Stock Compensation Plans | 751 | |||||||||||||||||||||||||||
| Diluted Earnings (Loss) Per Share | 66,042 | $ | 67,501 | $ | 1.02 | $ | (1,461 | ) | $ | (0.02 | ) | $ | 66,040 | $ | 1.00 | |||||||||||||
| For the Twelve Months Ended December 31, 2009 | ||||||||||||||||||||||||||||
| Income | Loss | |||||||||||||||||||||||||||
| From Continuing | From Discontinued | |||||||||||||||||||||||||||
| Operations | Operations | Net Income | ||||||||||||||||||||||||||
| Weighted | Per | Per | Per | |||||||||||||||||||||||||
| Average | Share | Share | Share | |||||||||||||||||||||||||
| Shares | Amount | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||
| Earnings (Loss) and Shares | 43,836 | $ | 57,167 | $ | 1.30 | $ | (25,619 | ) | $ | (0.58 | ) | $ | 31,548 | |||||||||||||||
| Effect of Participating Securities: | ||||||||||||||||||||||||||||
| Unvested Restricted Stock and Stock Units | - | (406 | ) | - | (406 | ) | ||||||||||||||||||||||
| Basic Earnings (Loss) Per Share | 43,836 | $ | 56,761 | $ | 1.29 | $ | (25,619 | ) | $ | (0.58 | ) | $ | 31,142 | $ | 0.71 | |||||||||||||
| Effect of Dilutive Securities: | ||||||||||||||||||||||||||||
| Contingently Convertible Debt ( 6.0% Convertible Notes) | 7,833 | 916 | 23 | 939 | ||||||||||||||||||||||||
| Contingently Convertible Debt ( 5.0% Convertible Notes) | 3,496 | 2,225 | 55 | 2,280 | ||||||||||||||||||||||||
| Stock Compensation Plans | 667 | |||||||||||||||||||||||||||
| Diluted Earnings (Loss) Per Share | 55,832 | $ | 59,902 | $ | 1.07 | $ | (25,541 | ) | $ | (0.45 | ) | $ | 34,361 | $ | 0.62 | |||||||||||||
| For the Twelve Months Ended December 31, 2010 | ||||||||||||||||||||||||||||
| Income | Loss | |||||||||||||||||||||||||||
| From Continuing | From Discontinued | |||||||||||||||||||||||||||
| Operations | Operations | Net Income | ||||||||||||||||||||||||||
| Weighted | Per | Per | Per | |||||||||||||||||||||||||
| Average | Share | Share | Share | |||||||||||||||||||||||||
| Shares | Amount | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||
| Earnings (Loss) and Shares | 52,214 | $ | 95,925 | $ | 1.84 | $ | (5,996 | ) | $ | (0.11 | ) | $ | 89,929 | |||||||||||||||
| Effect of Participating Securities: | ||||||||||||||||||||||||||||
| Unvested Restricted Stock and Stock Units | - | (921 | ) | - | (921 | ) | ||||||||||||||||||||||
| Basic Earnings (Loss) Per Share | 52,214 | $ | 95,004 | $ | 1.82 | $ | (5,996 | ) | $ | (0.12 | ) | $ | 89,008 | $ | 1.70 | |||||||||||||
| Effect of Dilutive Securities: | ||||||||||||||||||||||||||||
| Contingently Convertible Debt ( 5.0% Convertible Notes) | 12,890 | 9,022 | 31 | 9,053 | ||||||||||||||||||||||||
| Stock Compensation Plans | 690 | |||||||||||||||||||||||||||
| Diluted Earnings (Loss) Per Share | 65,794 | $ | 104,026 | $ | 1.58 | $ | (5,965 | ) | $ | (0.09 | ) | $ | 98,061 | $ | 1.49 | |||||||||||||