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

Exhibit 99.1

Sonic Automotive, Inc. Adjusted Diluted EPS Up 18%

Total Retail Unit Sales Increased 16.2%

CHARLOTTE, N.C. – October 23, 2012 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported 2012 third quarter adjusted earnings from continuing operations of $23.1 million for a 14.9% increase over the prior year results. Adjusted earnings from continuing operations per diluted share increased 17.6% to $0.40 compared to $0.34 in the prior year quarter. Adjusted results exclude a pre-tax charge of approximately $18.5 million, or $0.19 per diluted share, related to costs associated with retiring its outstanding 5.0% Convertible Senior Notes due 2029 (“5% Notes”).

Q3 2012 Highlights – Near-Record Quarterly New Retail Unit Volume; Completed Debt Issuance and Tender Process for 5% Convertible Notes; Costs In Line with Yearly Expectation

• Total Q3 revenues up 11.7% over prior year quarter

• New vehicle retail units up 25.2%

• Used vehicle retail units up 6.6%

• Parts and Service gross profit up 1.7%, up 3.3% when adjusted for selling days

• SG&A to gross profit % improved to 77.6% from 77.9% in the prior year quarter

B. Scott Smith, the Company’s President, noted, “We are pleased with our performance in the third quarter. Our operating performance stayed on track while we eliminated the last remnant of debt associated with our debt restructuring activities in 2009. We believe we have positioned the company for continued success by eliminating a significant ownership dilution risk through repurchasing the remaining 5% Notes during the quarter. This strategic action has simplified our capital structure and improved our debt profile by pushing our earliest public debt maturity back out to 2018.”

The Company’s EVP of Operations, Jeff Dyke, commented, “Our quarterly new retail vehicle unit volume of 33,737 units is the second highest level our complement of stores has ever achieved. The record occurred in the third quarter of 2006 when the quarterly SAAR averaged 16.6 million units compared to the current SAAR of 14.5 million units. We would like to thank our customers, our manufacturer partners and our associates for working together to help us achieve this performance. All the while, we were able to operate efficiently by controlling costs as evidenced by a 30 bps improvement in our SG&A to gross percentage to 77.6% from the prior year quarter. We continue to leverage technology and data to improve our customers’ experience in our stores and create value. For example, our new SIMS (Sonic Inventory Management System) and Retail Trade Center Process will completely revolutionize the way we manage, price and retail inventory across our stores. We anticipate completing the roll out of these systems in February of 2013 with the full benefits of the systems yielding results in the second quarter of 2013. We believe this will be another catalyst in driving our pre-owned performance in 2013.”

Third Quarter 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 to: www.sonicautomotive.com, then click on “Our Company”, then “Investor Relations”, then “Earnings Conference Calls”.

Presentation materials for the conference call 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”.

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

Domestic: 1.877.791.3416

International: 1.706.643.0958

Conference ID: 36761316

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

Domestic: 1.855.859.2056

International: 1.404.537.3406

Conference ID: 36761316

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 anticipated growth in used vehicle sales, and future success and impacts from the implementation of our strategic initiatives. 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 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 ending December 31, 2011 and quarterly report on Form 10-Q for the period ended June 30, 2012. The Company does not undertake any obligation to update forward-looking information.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(Dollars and shares in thousands, except per share amounts)

	Third Quarter Ended September 30, 2012									Third Quarter Ended September 30, 2011
	Reported			Adjustments			Adjusted			Reported			Adjustments		Adjusted
Revenues:
New retail vehicles	$	1,172,064		$	—		$	1,172,064		$	974,850		$	—	$	974,850
Fleet vehicles		37,302			—			37,302			52,319			—		52,319
Total new vehicles		1,209,366			—			1,209,366			1,027,169			—		1,027,169
Used vehicles		534,028			—			534,028			509,751			—		509,751
Wholesale vehicles		53,088			—			53,088			47,137			—		47,137
Total vehicles		1,796,482			—			1,796,482			1,584,057			—		1,584,057
Parts, service and collision repair		290,897			—			290,897			287,105			—		287,105
Finance, insurance and other		64,867			—			64,867			54,974			—		54,974
Total revenues		2,152,246			—			2,152,246			1,926,136			—		1,926,136
Gross profit		307,659			—			307,659			293,384			—		293,384
Selling, general and administrative expenses		(238,680	)		—			(238,680	)		(228,563	)		—		(228,563	)
Impairment charges		(23	)		—			(23	)		(102	)		—		(102	)
Depreciation and amortization		(11,375	)		—			(11,375	)		(10,137	)		—		(10,137	)
Operating income (loss)		57,581			—			57,581			54,582			—		54,582
Other income (expense):
Interest expense, floor plan		(4,858	)		—			(4,858	)		(4,163	)		—		(4,163	)
Interest expense, other, net		(15,709	)		1,167			(14,542	)		(16,941	)		—		(16,941	)
Other income (expense), net		(17,275	)		17,320			45			(811	)		—		(811	)
Total other income (expense)		(37,842	)		18,487			(19,355	)		(21,915	)		—		(21,915	)
Income (loss) from continuing operations before taxes		19,739			18,487			38,226			32,667			—		32,667
Provision for income taxes—benefit (expense)		(7,899	)		(7,210	)		(15,109	)		(12,556	)		—		(12,556	)
Income (loss) from continuing operations		11,840			11,277			23,117			20,111			—		20,111
Income (loss) from discontinued operations		(1,798	)		—			(1,798	)		(710	)		—		(710	)
Net income (loss)	$	10,042		$	11,277		$	21,319		$	19,401		$	—	$	19,401
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	0.21		$	0.19		$	0.40		$	0.34		$	—	$	0.34
Earnings (loss) per share from discontinued operations		(0.03	)		—			(0.03	)		(0.01	)		—		(0.01	)
Earnings (loss) per common share	$	0.18		$	0.19		$	0.37		$	0.33		$	—	$	0.33
Weighted average common shares outstanding		59,011			—			59,011			65,517			—		65,517
Gross Margin Data (Continuing Operations):
New retail vehicles		5.7	%					5.7	%		6.7	%				6.7	%
Fleet vehicles		2.5	%					2.5	%		3.2	%				3.2	%
Total new vehicles		5.6	%					5.6	%		6.5	%				6.5	%
Used vehicles		6.8	%					6.8	%		6.6	%				6.6	%
Wholesale vehicles		(6.5	)%					(6.5	)%		(4.7	)%				(4.7	)%
Parts, service and collision repair		48.9	%					48.9	%		48.7	%				48.7	%
Finance, insurance and other		100.0	%					100.0	%		100.0	%				100.0	%
Overall gross margin		14.3	%					14.3	%		15.2	%				15.2	%
SG&A Expenses (Continuing Operations):
Compensation	$	142,368								$	134,001
Advertising		12,871									13,091
Rent and rent related		27,063									28,728
Other		56,378									52,743
Total SG&A expenses	$	238,680		$	—		$	238,680		$	228,563		$	—	$	228,563
SG&A expenses as % of gross profit		77.6	%					77.6	%		77.9	%				77.9	%
Operating Margin %		2.7	%					2.7	%		2.8	%				2.8	%
Unit Data (Continuing Operations):
New retail units		33,737									26,955
Fleet units		1,325									2,031
Total new units		35,062									28,986
Used units		27,018									25,334
Wholesale units		9,074									7,039

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(Dollars and shares in thousands, except per share amounts)

	Nine Months Ended September 30, 2012									Nine Months Ended September 30, 2011
	Reported			Adjustments			Adjusted			Reported			Adjustments		Adjusted
Revenues:
New retail vehicles	$	3,325,877		$	—		$	3,325,877		$	2,820,020		$	—	$	2,820,020
Fleet vehicles		126,585			—			126,585			170,337			—		170,337
Total new vehicles		3,452,462			—			3,452,462			2,990,357			—		2,990,357
Used vehicles		1,581,682			—			1,581,682			1,489,098			—		1,489,098
Wholesale vehicles		140,670			—			140,670			122,261			—		122,261
Total vehicles		5,174,814			—			5,174,814			4,601,716			—		4,601,716
Parts, service and collision repair		885,412			—			885,412			857,541			—		857,541
Finance, insurance and other		187,199			—			187,199			157,175			—		157,175
Total revenues		6,247,425			—			6,247,425			5,616,432			—		5,616,432
Gross profit		930,368			—			930,368			875,544			—		875,544
Selling, general and administrative expenses		(722,446	)		—			(722,446	)		(682,442	)		—		(682,442	)
Impairment charges		(57	)		—			(57	)		(160	)		—		(160	)
Depreciation and amortization		(33,636	)		—			(33,636	)		(29,457	)		—		(29,457	)
Operating income (loss)		174,229			—			174,229			163,485			—		163,485
Other income (expense):
Interest expense, floor plan		(14,101	)		—			(14,101	)		(14,031	)		—		(14,031	)
Interest expense, other, net		(46,186	)		1,167			(45,019	)		(50,957	)		—		(50,957	)
Other income (expense), net		(19,808	)		19,898			90			(741	)		—		(741	)
Total other income (expense)		(80,095	)		21,065			(59,030	)		(65,729	)		—		(65,729	)
Income (loss) from continuing operations before taxes		94,134			21,065			115,199			97,756			—		97,756
Provision for income taxes—benefit (expense)		(32,596	)		(11,783	)		(44,379	)		(38,673	)		—		(38,673	)
Income (loss) from continuing operations		61,538			9,282			70,820			59,083			—		59,083
Income (loss) from discontinued operations		(2,819	)		—			(2,819	)		(3,367	)		—		(3,367	)
Net income (loss)	$	58,719		$	9,282		$	68,001		$	55,716		$	—	$	55,716
Diluted earnings (loss) per common share:
Earnings (loss) per share from continuing operations	$	1.05		$	0.14		$	1.19		$	0.99		$	—	$	0.99
Earnings (loss) per share from discontinued operations		(0.05	)		—			(0.05	)		(0.05	)		—		(0.05	)
Earnings (loss) per common share	$	1.00		$	0.14		$	1.14		$	0.94		$	—	$	0.94
Weighted average common shares outstanding		62,300			—			62,300			65,800			—		65,800
Gross Margin Data (Continuing Operations):
New retail vehicles		6.0	%					6.0	%		6.7	%				6.7	%
Fleet vehicles		2.9	%					2.9	%		3.2	%				3.2	%
Total new vehicles		5.9	%					5.9	%		6.5	%				6.5	%
Used vehicles		7.1	%					7.1	%		7.3	%				7.3	%
Wholesale vehicles		(3.2	)%					(3.2	)%		(3.6	)%				(3.6	)%
Parts, service and collision repair		48.9	%					48.9	%		49.1	%				49.1	%
Finance, insurance and other		100.0	%					100.0	%		100.0	%				100.0	%
Overall gross margin		14.9	%					14.9	%		15.6	%				15.6	%
SG&A Expenses (Continuing Operations):
Compensation	$	431,456								$	400,203
Advertising		38,330									39,065
Rent and rent related		81,724									88,668
Other		170,936									154,506
Total SG&A expenses	$	722,446		$	—		$	722,446		$	682,442		$	—	$	682,442
SG&A expenses as % of gross profit		77.7	%					77.7	%		77.9	%				77.9	%
Operating Margin %		2.8	%					2.8	%		2.9	%				2.9	%
Unit Data (Continuing Operations):
New retail units		96,249									80,550
Fleet units		4,616									6,630
Total new units		100,865									87,180
Used units		79,732									75,381
Wholesale units		24,116									18,633

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(In thousands, except per share amounts)

	Third Quarter Ended September 30, 2012
	Weighted Average Shares		Income (Loss) From Continuing Operations					Income (Loss) From Discontinued Operations						Net Income (Loss)
			Amount			Per Share Amount		Amount			Per Share Amount			Amount			Per Share Amount
Reported:
Earnings (loss) and shares		55,069	$	11,840				$	(1,798	)				$	10,042
Effect of participating securities:
Non-vested restricted stock and stock units				(175	)				—						(175	)
Basic earnings (loss) and shares		55,069	$	11,665		$	0.21	$	(1,798	)	$	(0.03	)	$	9,867		$	0.18
Effect of dilutive securities:
Contingently convertible debt (5.0% Convertible Notes)		3,534		618					2						620
Stock compensation plans		408
Diluted earnings (loss) and shares		59,011	$	12,283		$	0.21	$	(1,796	)	$	(0.03	)	$	10,487		$	0.18
Adjustments (net of tax):
Double-carry interest			$	712		$	0.01	$	—		$	—		$	712		$	0.01
Debt extinguishment charges				10,565			0.18		—			—			10,565			0.18
Total adjustments			$	11,277		$	0.19	$	—		$	—		$	11,277		$	0.19
Adjusted:
Diluted earnings (loss) per share						$	0.40				$	(0.03	)				$	0.37
	Third Quarter Ended September 30, 2011
	Weighted Average Shares		Income (Loss) From Continuing Operations					Income (Loss) From Discontinued Operations						Net Income (Loss)
			Amount			Per Share Amount		Amount			Per Share Amount			Amount			Per Share Amount
Reported:
Earnings (loss) and shares		52,366	$	20,111				$	(710	)				$	19,401
Effect of participating securities:
Non-vested restricted stock and stock units				(263	)				—						(263	)
Basic earnings (loss) and shares		52,366	$	19,848		$	0.38	$	(710	)	$	(0.01	)	$	19,138		$	0.37
Effect of dilutive securities:
Contingently convertible debt (5.0% Convertible Notes)		12,590		2,329					37						2,366
Stock compensation plans		561
Diluted earnings (loss) and shares		65,517	$	22,177		$	0.34	$	(673	)	$	(0.01	)	$	21,504		$	0.33
Adjusted:
Diluted earnings (loss) per share						$	0.34				$	(0.01	)				$	0.33

Sonic Automotive, Inc.

Results of Operations (Unaudited)

(In thousands, except per share amounts)

	Nine Months Ended September 30, 2012
			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
Reported:
Earnings (loss) and shares		53,302	$	61,538					$	(2,819	)				$	58,719
Effect of participating securities:
Non-vested restricted stock and stock units				(934	)					—						(934	)
Basic earnings (loss) and shares		53,302	$	60,604		$	1.14		$	(2,819	)	$	(0.06	)	$	57,785		$	1.08
Effect of dilutive securities:
Contingently convertible debt (5.0% Convertible Notes)		8,563		4,638						43						4,681
Stock compensation plans		435
Diluted earnings (loss) and shares		62,300	$	65,242		$	1.05		$	(2,776	)	$	(0.05	)	$	62,466		$	1.00
Adjustments (net of tax):
Double-carry interest			$	712		$	0.01		$	—		$	—		$	712		$	0.01
Debt extinguishment charges				12,138			0.19			—			—			12,138			0.19
Settlement of state tax examination				(3,568	)		(0.06	)		—			—			(3,568	)		(0.06	)
Total adjustments			$	9,282		$	0.14		$	—		$	—		$	9,282		$	0.14
Adjusted:
Diluted earnings (loss) per share						$	1.19					$	(0.05	)				$	1.14
	Nine Months Ended September 30, 2011
			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
Reported:
Earnings (loss) and shares		52,414	$	59,083					$	(3,367	)				$	55,716
Effect of participating securities:
Non-vested restricted stock and stock units				(773	)					—						(773	)
Basic earnings (loss) and shares		52,414	$	58,310		$	1.11		$	(3,367	)	$	(0.06	)	$	54,943		$	1.05
Effect of dilutive securities:
Contingently convertible debt (5.0% Convertible Notes)		12,789		6,851						119						6,970
Stock compensation plans		597
Diluted earnings (loss) and shares		65,800	$	65,161		$	0.99		$	(3,248	)	$	(0.05	)	$	61,913		$	0.94
Adjusted:
Diluted earnings (loss) per share						$	0.99					$	(0.05	)				$	0.94