Sonic Automotive (SAH) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Sonic Automotive, Inc. Closes a Strong 2006 with Fourth Quarter Continuing Ops Earnings up 6% Over Prior Year.

CHARLOTTE, N.C. –February 27, 2007 –Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced that its 2006 fourth quarter earnings from continuing operations were up 6.3% at $28.4 million, or $0.63 per diluted share, compared to $26.7 million, or $0.61 per diluted share, in the prior year period. The Company is finalizing its conclusions regarding hedge accounting treatment for its 2005 convertible notes which it does not currently believe will have a material impact on reported results. The results for the quarter ended December 31, 2006 include $0.01 per diluted share of stock option expense related to the Company’s adoption of SFAS 123R.

Total revenue for the fourth quarter of 2006 increased 6.5% with overall same store revenue up 2.7%. Luxury brands accounted for 54% of our total revenue, a new record for Sonic Automotive. Inventory days supply remains in good condition with new vehicles at 48 days and used vehicles at 37 days. Selling, general and administrative expenses as a percentage of gross profit improved to 73.9% for the quarter compared to 74.7% a year ago. The Company’s operating margin was 3.8%, up 20 basis points from the fourth quarter of last year. The Company’s debt-to-capital ratio was 39.5% at December 31, 2006, down from 46.0% at December 31, 2005.

“We ended 2006 on a strong note by continuing our trend of consistent same store sales performance while maintaining margins and controlling expenses,” said President and COO Jeffrey C. Rachor. “We are proud of the operating progress we made in 2006. As we look ahead to 2007, we believe our standardized processes, continued operating execution, and lower leverage put us in a favorable position for disciplined growth. Specifically, we expect to add to our luxury and import brand mix by targeting acquisitions of 10% to 15% of annual revenues in 2007. This acquisition growth is not included in our 2007 earnings guidance.”

Commenting further on 2007, Mr. Rachor said, “We expect to see a stable operating environment with overall same store revenues increasing between two and four percent. We are targeting earnings per share from continuing operations of $2.48 to $2.58 in 2007, which does not include any potential acquisitions. We completed a number of facility projects in the second half of 2006 to increase the service capacity in several of our luxury stores. We anticipate that some of our 2007 operating improvement will be offset by higher rent expense as we grow into this additional capacity. Also included in our guidance is approximately $0.08 of share dilution to account for our contingently convertible notes issued in 2005. All of these items will be discussed in further detail on our quarterly earnings call.”

Presentation materials for the Company’s February 27, 2007 earnings conference call can be accessed on the Company’s website atwww.sonicautomotive.com by clicking on the “For Investors” tab and choosing “Webcasts & Presentations” on the left side of the screen.

To access the live broadcast of the conference call over the Internet go to:

www.ccbn.com orwww.sonicautomotive.com

A live audio of the conference 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 (domestic) or (706) 645-9291 (international), conference call ID # 8080861.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 171 franchises and 37 collision repair centers. Sonic can be reached on the Web atwww.sonicautomotive.com.

Included herein are forward-looking statements, including statements pertaining to anticipated acquisition activity, earnings per share from continuing operations, operating improvements, as well as anticipated industry conditions. 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, risks associated with acquisitions and the risk factors described in the Company’s quarterly report on Form 10-Q for the quarter ended September 30, 2006. 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						Twelve Months Ended
	12/31/2006			12/31/2005			12/31/2006			12/31/2005
Revenues
Retail new vehicles	$	1,154,414		$	1,063,630		$	4,554,739		$	4,171,269
Fleet vehicles		73,822			71,502			342,545			312,651
New vehicles		1,228,236			1,135,132			4,897,284			4,483,920
Used vehicles		298,187			279,109			1,275,020			1,126,651
Wholesale vehicles		104,887			123,323			493,512			498,589
Total vehicles		1,631,310			1,537,564			6,665,816			6,109,160
Parts, service and collision repair		279,376			256,716			1,114,870			988,432
Finance, insurance and other		47,726			44,453			191,388			181,128
Total revenues		1,958,412			1,838,733			7,972,074			7,278,720
Total gross profit		305,062			286,178			1,231,582			1,117,045
SG&A expenses		225,310			213,700			939,825			850,450
Depreciation		6,031			6,935			23,409			18,390
Operating income		73,721			65,543			268,348			248,205
Interest expense, floor plan		15,939			10,374			59,609			35,493
Interest expense, other		9,334			11,728			42,785			45,368
Other (expense) / income		56			30			(597	)		45
Income from continuing operations before taxes		48,504			43,471			165,357			167,389
Income taxes		20,149			16,809			66,791			61,414
Income from continuing operations		28,355			26,662			98,566			105,975
Discontinued operations:
Loss from operations and the sale of discontinued franchises		(6,330	)		(6,747	)		(26,090	)		(16,647	)
Income tax benefit		1,214			1,026			8,641			2,533
Loss from discontinued operations		(5,116	)		(5,721	)		(17,449	)		(14,114	)
Net income	$	23,239		$	20,941		$	81,117		$	91,861
Diluted:
Weighted average common shares outstanding		46,902			45,578			46,265			45,533
Earnings per share from continuing operations	$	0.63		$	0.61		$	2.22		$	2.42
Loss per share from discontinued operations	($	0.11	)	($	0.13	)	($	0.37	)	($	0.30	)
Earnings per share	$	0.52		$	0.48		$	1.85		$	2.12
Gross Margin Data (Continuing Operations):
Retail new vehicles		7.6	%		7.8	%		7.6	%		7.6	%
Fleet vehicles		2.1	%		3.2	%		2.6	%		3.0	%
Total new vehicles		7.3	%		7.5	%		7.3	%		7.3	%
Used vehicles		9.5	%		10.4	%		10.1	%		10.5	%
Total vehicles		7.1	%		7.4	%		7.2	%		7.3	%
Parts, service and collision repair		50.4	%		49.7	%		50.0	%		49.5	%
Finance, insurance and other		100.0	%		100.0	%		100.0	%		100.0	%
Overall gross margin		15.6	%		15.6	%		15.4	%		15.3	%
SG&A Expenses (Continuing Operations):
Personnel	$	129,126		$	124,491		$	543,258		$	499,251
Advertising		16,154			14,438			64,233			58,673
Facility rent		24,421			21,769			98,139			81,241
Other		55,609			53,002			234,195			211,285
Total	$	225,310		$	213,700		$	939,825		$	850,450
Unit Data (Continuing Operations):
New retail units		33,814			32,060			140,730			132,906
Fleet units		3,250			3,206			15,517			14,140
New units		37,064			35,266			156,247			147,046
Used units		15,422			14,778			66,891			61,456
Total units retailed		52,486			50,044			223,138			208,502
Wholesale units		12,090			13,421			53,701			55,803
Average price per unit:
New retail vehicles		34,140			33,176			32,365			31,385
Fleet vehicles		22,714			22,303			22,075			22,111
Total new vehicles		33,138			32,188			31,343			30,493
Used vehicles		19,335			18,887			19,061			18,333
Wholesale vehicles		8,675			9,189			9,190			8,935
Other Data:
Same store revenue percentage changes:
New retail		4.3	%					3.3	%
Fleet		3.1	%					8.3	%
New total		4.2	%					3.7	%
Used		3.4	%					8.1	%
Parts, service and collision repair		3.1	%					5.2	%
Finance, insurance and other		4.4	%					2.8	%
Total		2.7	%					3.9	%

Balance Sheet Data:

	12/31/2006			12/31/2005
ASSETS
Current Assets:
Cash and cash equivalents	$	12,696		$	7,566
Receivables, net		385,849			396,225
Inventories		991,984			1,016,457
Assets held for sale		160,571			103,855
Construction in progress and land expected to be sold in sale-leaseback transactions		26,198			65,113
Other current assets		35,018			27,483
Total current assets		1,612,316			1,616,699
Property and Equipment, Net		220,551			148,267
Goodwill, Net		1,155,428			1,122,538
Other Intangibles, Net		94,136			88,696
Other Assets		41,517			49,301
TOTAL ASSETS	$	3,123,948		$	3,025,501
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Floor plan notes payable - trade	$	377,943		$	579,022
Floor plan notes payable - non-trade		686,515			410,296
Trade accounts payable		68,016			91,101
Accrued interest		19,336			17,378
Other accrued liabilities		180,574			167,060
Liabilities associated with assets held for sale - trade		54,229			45,953
Liabilities associated with assets held for sale - non-trade		42,063			6,937
Current maturities of long-term debt		2,707			2,747
Total current liabilities		1,431,383			1,320,494
LONG-TERM DEBT		598,627			712,311
OTHER LONG-TERM LIABILITIES		39,570			29,479
DEFERRED INCOME TAXES		151,034			132,419
STOCKHOLDERS’ EQUITY		903,334			830,798
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,123,948		$	3,025,501
Balance Sheet Ratios:
Current Ratio		1.13			1.22
Debt to Total Capital, Net of Cash		39.5	%		46.0	%