CHARLOTTE, N.C., April 26, 2016 /PRNewswire/ --

First Quarter 2016 Results


    --  Record Q1 pre-owned units of 29,333, up 4.3% over the prior year quarter
    --  Record Q1 finance and insurance ("F&I") gross profit of $81.3 million,
        up 8.9% over the prior year quarter
    --  Record Q1 fixed operations gross profit of $166.0 million, up 6.2% over
        the prior year quarter
    --  Record Q1 total gross profit of $345.2 million, up 3.0% over the prior
        year quarter
    --  EchoPark(®) stores retailed 941 units

Sonic Automotive, Inc. (NYSE: SAH), one of the nation's largest automotive retailers, today reported adjusted net income from continuing operations for the first quarter of 2016 of $18.2 million, or $0.39 per diluted share. Included in these adjusted amounts are pre-tax expenses of $3.6 million, or $0.05 per diluted share, related to the Company's EchoPark(®) operations. Adjusted net income from continuing operations and related diluted earnings per share are non-GAAP financial measures. The schedules included in this press release reconcile these non-GAAP financial measures to the comparable GAAP financial measures.

Adjusted net income from continuing operations for the first quarter of 2015 was $18.8 million, or $0.37 per diluted share. Included in these adjusted amounts are pre-tax expenses of $4.9 million, or $0.06 per share, related to the Company's EchoPark(®) operations.

On a GAAP basis, net income from continuing operations and related diluted earnings per share for the first quarter of 2016 were $14.5 million and $0.31 per share, respectively, compared to $14.4 million and $0.28 per diluted share, respectively, for the first quarter of 2015.

Jeff Dyke, Sonic's EVP of Operations, stated, "We are pleased with our operating results during the quarter. Strong performances in the fixed operations and the F&I areas drove the overall increase in gross profit to record levels. We continued to see gross profit compression in new vehicles and expect this to continue until inventory supply corrects to more normalized levels. The used vehicle market continues to demonstrate its resiliency despite the compression related to new vehicles. Our EchoPark(®) stores continue to grow and mature. The expansion in Denver is on schedule and we anticipate opening two additional stores in the second quarter of 2016 and another by the end of the year. We are also happy to announce we will be introducing the EchoPark(®) brand to the Texas and Carolinas markets in 2017 where we have been actively accumulating property."

B. Scott Smith, the Company's Chief Executive Officer, noted, "Execution of our core strategies continued in the first quarter. Our commitment to return capital through dividends and share repurchases has rewarded our long-term stockholders. Subsequent to the end of the quarter, we repurchased an additional 363,000 shares for approximately $6.4 million. In addition to the real estate and construction activities related to EchoPark(®), we are aggressively replacing leased properties with image-compliant facilities on owned land. We anticipate investing approximately $250 million in land and facilities in the current year funded by mortgages and cash generated through operations. These hard assets are the cornerstones of our long-term plan. We are maintaining our guidance of adjusted diluted earnings per share from continuing operations for 2016 to be between $2.07 and $2.17 per share."

Dividend

Sonic's Board of Directors approved a quarterly dividend of $0.05 per share payable in cash for stockholders of record on June 15, 2016. The dividend will be payable on July 15, 2016.

First 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: 1.877.450.3867
International: 1.706.643.0958
Conference ID: 81083014

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: 81083014

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 expansion of our EchoPark(®) store initiatives and the anticipated amount of investments related to capital expenditures. 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 views, 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, 2015. The Company does not undertake any obligation to update forward-looking information.



                                                                                                                                          Sonic Automotive, Inc.
                                                                                                                                     Results of Operations (Unaudited)


    This release contains certain non-GAAP financial measures as defined under SEC rules, such as, but not limited to, adjusted income from continuing operations and related earnings per share data.  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 March 31,
                                                                                                                                                                                    ----------------------------

                                                                                                                                                                                                                       2016                                                  2015
                                                                                                                                                                                                                       ----                                                  ----

                                                                                                                                                                              (In thousands, except per share and unit
                                                                                                                                                                                                data)

    Revenues:

    New retail vehicles                                                                                                                                                                                          $1,149,437                                            $1,190,215

    Fleet vehicles                                                                                                                                                                                                   15,133                                                12,108

    Total new vehicles                                                                                                                                                                                            1,164,570                                             1,202,323

    Used vehicles                                                                                                                                                                                                   598,355                                               593,742

    Wholesale vehicles                                                                                                                                                                                               44,374                                                41,656
                                                                                                                                                                                                                     ------                                                ------

    Total vehicles                                                                                                                                                                                                1,807,299                                             1,837,721

    Parts, service and collision repair                                                                                                                                                                             346,054                                               323,194

    Finance, insurance and other, net                                                                                                                                                                                81,273                                                74,600
                                                                                                                                                                                                                     ------                                                ------

    Total revenues                                                                                                                                                                                                2,234,626                                             2,235,515

    Gross profit                                                                                                                                                                                                    345,150                                               334,959

    Selling, general and administrative expenses                                                                                                                                                                  (284,375)                                            (270,862)

    Impairment charges                                                                                                                                                                                                    -                                              (6,192)

    Depreciation and amortization                                                                                                                                                                                  (18,470)                                             (16,409)
                                                                                                                                                                                                                    -------                                               -------

    Operating income (loss)                                                                                                                                                                                          42,305                                                41,496

    Other income (expense):

    Interest expense, floor plan                                                                                                                                                                                    (6,436)                                              (4,778)

    Interest expense, other, net                                                                                                                                                                                   (12,339)                                             (13,219)

    Other income (expense), net                                                                                                                                                                                         104                                                    90
                                                                                                                                                                                                                        ---                                                   ---

    Total other income (expense)                                                                                                                                                                                   (18,671)                                             (17,907)
                                                                                                                                                                                                                    -------                                               -------

    Income (loss) from continuing operations before taxes                                                                                                                                                            23,634                                                23,589

    Provision for income taxes for continuing operations - benefit (expense)                                                                                                                                        (9,170)                                              (9,200)
                                                                                                                                                                                                                     ------                                                ------

    Income (loss) from continuing operations                                                                                                                                                                         14,464                                                14,389

    Income (loss) from discontinued operations                                                                                                                                                                          160                                                 (422)
                                                                                                                                                                                                                        ---                                                  ----

    Net income (loss)                                                                                                                                                                                               $14,624                                               $13,967
                                                                                                                                                                                                                    =======                                               =======


    Diluted earnings (loss) per common share:

    Earnings (loss) per share from continuing operations                                                                                                                                                              $0.31                                                 $0.28

    Earnings (loss) per share from discontinued operations                                                                                                                                                                -                                               (0.01)

    Earnings (loss) per common share                                                                                                                                                                                  $0.31                                                 $0.27
                                                                                                                                                                                                                      =====                                                 =====

    Weighted average common shares outstanding                                                                                                                                                                       47,122                                                51,403


    Gross Margin Data (Continuing Operations):

    New retail vehicles                                                                                                                                                                                                5.1%                                                 5.3%

    Fleet vehicles                                                                                                                                                                                                     0.2%                                               (0.6%)

    Total new vehicles                                                                                                                                                                                                 5.0%                                                 5.3%

    Used vehicles                                                                                                                                                                                                      6.8%                                                 6.9%

    Wholesale vehicles                                                                                                                                                                                               (2.4%)                                               (0.5%)

    Parts, service and collision repair                                                                                                                                                                               48.0%                                                48.4%

    Finance, insurance and other                                                                                                                                                                                     100.0%                                               100.0%

    Overall gross margin                                                                                                                                                                                              15.4%                                                15.0%


    SG&A Expenses (Continuing Operations):

    Compensation                                                                                                                                                                                                   $169,041                                              $161,858

    Advertising                                                                                                                                                                                                      15,347                                                15,332

    Rent                                                                                                                                                                                                             18,720                                                18,254

    Other                                                                                                                                                                                                            81,267                                                75,418

    Total SG&A expenses                                                                                                                                                                                            $284,375                                              $270,862

    SG&A expenses as % of gross profit                                                                                                                                                                                82.4%                                                80.9%


    Operating Margin %                                                                                                                                                                                               1.9%                                                 1.9%


    Unit Data (Continuing Operations):

    New retail units                                                                                                                                                                                                 30,156                                                31,334

    Fleet units                                                                                                                                                                                                         449                                                   355

    Total new units                                                                                                                                                                                                  30,605                                                31,689

    Used units                                                                                                                                                                                                       29,333                                                28,135

    Wholesale units                                                                                                                                                                                                   8,423                                                 7,777



                                                                                                                                                                                       Sonic Automotive, Inc.
                                                                                                                                                                                  Results of Operations (Unaudited)


    Per Share Data


                                                                                                                                 Three Months Ended March 31, 2016
                                                                                                                                 ---------------------------------

                                                                                                                                                           Income (Loss)                             Income (Loss)

                                                                                                                                                          From Continuing                          From Discontinued

                                                                                                                                                            Operations                                 Operations           Net Income (Loss)
                                                                                                                                                            ----------                                 ----------           ----------------

                                                                                                                   Weighted                                                                               Per                                           Per                                    Per

                                                                                                                   Average                                                                               Share                                         Share                                  Share

                                                                                                                    Shares                                    Amount                                     Amount                  Amount               Amount                Amount            Amount
                                                                                                                    ------                                    ------                                     ------                  ------               ------                ------            ------

                                                                                                                            (In thousands, except per share amounts)

    Reported:

    Earnings (loss) and shares                                                                                                46,950                                      $14,464                                                               $160                                $14,624

    Effect of participating securities:

    Non-vested restricted stock                                                                                                                                              (6)                                                                 -                                   (6)
                                                                                                                                                                             ---                                                                ---                                   ---

    Basic earnings (loss) and shares                                                                                          46,950                                      $14,458                                     $0.31                      $160       $             -          $14,618            $0.31

    Effect of dilutive securities:

    Stock compensation plans                                                                                                     172

    Diluted earnings (loss) and shares                                                                                        47,122                                      $14,458                                     $0.31                      $160       $             -          $14,618            $0.31
                                                                                                                              ======                                      =======                                     =====                      ====       ===============          =======            =====


    Adjustments (net of tax):

    Storm damage and other                                                                                                                                                $3,698                                     $0.08                    $(320)              $(0.01)           $3,378            $0.07

    Total adjustments                                                                                                                                                     $3,698                                     $0.08                    $(320)              $(0.01)           $3,378            $0.07


    Adjusted:

    Earnings (loss) and

    diluted earnings (loss) per share (1)                                                                                                                                $18,162                                     $0.39                    $(160)              $(0.01)          $18,002            $0.38
                                                                                                                                                                                                                    =====                                         ======                             =====


    (1) Net loss attributable to EchoPark(R) operations was $0.05 per fully diluted share in the three months ended March 31, 2016.



                                                                                                                               Three Months Ended March 31, 2015
                                                                                                                               ---------------------------------

                                                                                                                                                           Income (Loss)                             Income (Loss)

                                                                                                                                                          From Continuing                          From Discontinued

                                                                                                                                                            Operations                                 Operations           Net Income (Loss)
                                                                                                                                                            ----------                                 ----------           ----------------

                                                                                                                   Weighted                                                                               Per                                           Per                                    Per

                                                                                                                   Average                                                                               Share                                         Share                                  Share

                                                                                                                    Shares                                    Amount                                     Amount                  Amount               Amount                Amount            Amount
                                                                                                                    ------                                    ------                                     ------                  ------               ------                ------            ------

                                                                                                                            (In thousands, except per share amounts)

    Reported:

    Earnings (loss) and shares                                                                                                50,854                                      $14,389                                                             $(422)                               $13,967

    Effect of participating securities:

    Non-vested restricted stock

    and stock units                                                                                                                                                          (5)                                                                 -                                   (5)
                                                                                                                                                                             ---                                                                ---                                   ---

    Basic earnings (loss) and shares                                                                                          50,854                                      $14,384                                     $0.28                    $(422)              $(0.01)          $13,962            $0.27

    Effect of dilutive securities:

    Stock compensation plans                                                                                                     549
                                                                                                                                 ---

    Diluted earnings (loss) and shares                                                                                        51,403                                      $14,384                                     $0.28                    $(422)              $(0.01)          $13,962            $0.27
                                                                                                                              ======                                      =======                                     =====                     =====                ======           =======            =====


    Adjustments (net of tax):

    Storm damage and other                                                                                                                                                  $634                                     $0.02           $             -       $            -             $634            $0.02

    Impairment charges                                                                                                                                                     3,777                                      0.07                         -                    -            3,777             0.07

    Total adjustments                                                                                                                                                     $4,411                                     $0.09           $             -       $            -           $4,411            $0.09


    Adjusted:

    Earnings (loss) and

    diluted earnings (loss) per share (2)                                                                                                                                $18,800                                     $0.37                    $(422)              $(0.01)          $18,378            $0.36
                                                                                                                                                                                                                    =====                                         ======                             =====


    (2) Net loss attributable to EchoPark(R) operations was $0.06 per fully diluted share in the three months ended March 31, 2015.



                                                                                   Sonic Automotive, Inc.
                                                                              Results of Operations (Unaudited)


    New Vehicles


                                       Three Months Ended March 31,                                       Better / (Worse)
                                       ----------------------------                                       ----------------

                                                                       2016                                                      2015 Change               % Change
                                                                       ----                                                      ---- ------               --------

                                   (In thousands, except units and per unit data)

    Reported:

    Revenue                                                      $1,164,570                                                $1,202,323        $(37,753)              (3.1%)

    Gross profit                                                    $58,424                                                   $63,350         $(4,926)              (7.8%)

    Unit sales                                                       30,605                                                    31,689          (1,084)              (3.4%)

    Revenue per unit                                                $38,052                                                   $37,941             $111                 0.3%

    Gross profit per unit                                            $1,909                                                    $1,999            $(90)              (4.5%)

    Gross profit as a % of revenue                                     5.0%                                                     5.3%            (30)

                                                                                                                                                       bps


                                       Three Months Ended March 31,                                       Better / (Worse)
                                       ----------------------------                                       ----------------

                                                                       2016                                                      2015 Change               % Change
                                                                       ----                                                      ---- ------               --------

                                   (In thousands, except units and per unit data)

    Same Store:

    Revenue                                                      $1,164,570                                                $1,189,495        $(24,925)              (2.1%)

    Gross profit                                                    $58,375                                                   $62,498         $(4,123)              (6.6%)

    Unit sales                                                       30,605                                                    31,372            (767)              (2.4%)

    Revenue per unit                                                $38,052                                                   $37,916             $136                 0.4%

    Gross profit per unit                                            $1,907                                                    $1,992            $(85)              (4.3%)

    Gross profit as a % of revenue                                     5.0%                                                     5.3%            (30)

                                                                                                                                                       bps



                                                                                    Sonic Automotive, Inc.
                                                                              Results of Operations (Unaudited)


    Used Vehicles


                                       Three Months Ended March 31,                                       Better / (Worse)
                                       ----------------------------                                       ----------------

                                                                       2016                                                    2015 Change                  % Change
                                                                       ----                                                    ---- ------                  --------

                                   (In thousands, except units and per unit data)

    Reported:

    Revenue                                                        $598,355                                                $593,742          $4,613                     0.8%

    Gross profit                                                    $40,531                                                 $40,844          $(313)                  (0.8%)

    Unit sales                                                       29,333                                                  28,135           1,198                     4.3%

    Revenue per unit                                                $20,399                                                 $21,103          $(704)                  (3.3%)

    Gross profit per unit                                            $1,382                                                  $1,452           $(70)                  (4.8%)

    Gross profit as a % of revenue                                     6.8%                                                   6.9%           (10)

                                                                                                                                                        bps


                                       Three Months Ended March 31,                                       Better / (Worse)
                                       ----------------------------                                       ----------------

                                                                       2016                                                    2015  Change                 % Change
                                                                       ----                                                    ---- ------                  --------

                                   (In thousands, except units and per unit data)

    Same Store:

    Revenue                                                        $598,355                                                $584,987         $13,368                     2.3%

    Gross profit                                                    $40,690                                                 $41,008          $(318)                  (0.8%)

    Unit sales                                                       29,333                                                  27,687           1,646                     5.9%

    Revenue per unit                                                $20,399                                                 $21,129          $(730)                  (3.5%)

    Gross profit per unit                                            $1,387                                                  $1,481           $(94)                  (6.3%)

    Gross profit as a % of revenue                                     6.8%                                                   7.0%           (20)

                                                                                                                                                    bps



                                                                                            Sonic Automotive, Inc.
                                                                                      Results of Operations (Unaudited)


    Wholesale Vehicles


                                                    Three Months Ended March 31,                                        Better / (Worse)
                                                    ----------------------------                                        ----------------

                                                                                     2016                                                   2015 Change              % Change
                                                                                     ----                                                   ---- ------              --------

                                          (In thousands, except units and per unit data)

    Reported:

    Revenue                                                                       $44,374                                                $41,656          $2,718                             6.5%

    Gross profit (loss)                                                          $(1,078)                                                $(210)         $(868)                        (413.3%)

    Unit sales                                                                      8,423                                                  7,777             646                             8.3%

    Revenue per unit                                                               $5,268                                                 $5,356           $(88)                          (1.6%)

    Gross profit (loss) per unit                                                   $(128)                                                 $(27)         $(101)                        (374.1%)

    Gross profit (loss) as a % of revenue                                          (2.4%)                                                (0.5%)          (190)

                                                                                                                                                                 bps


                                                    Three Months Ended March 31,                                        Better / (Worse)
                                                    ----------------------------                                        ----------------

                                                                                     2016                                                   2015 Change                       % Change
                                                                                     ----                                                   ---- ------                       --------

                                                (In thousands, except units and per unit data)

    Same Store:

    Revenue                                                                       $44,353                                                $41,253          $3,100                             7.5%

    Gross profit (loss)                                                          $(1,076)                                                $(197)         $(879)                        (446.2%)

    Unit sales                                                                      8,418                                                  7,688             730                             9.5%

    Revenue per unit                                                               $5,269                                                 $5,366           $(97)                          (1.8%)

    Gross profit (loss) per unit                                                   $(128)                                                 $(26)         $(102)                        (392.3%)

    Gross profit (loss) as a % of revenue                                          (2.4%)                                                (0.5%)          (190)

                                                                                                                                                                 bps



                                                                                                         Sonic Automotive, Inc.
                                                                                                   Results of Operations (Unaudited)


    Parts, Service and Collision Repair ("Fixed Operations")


                                                             Three Months Ended March 31,                                       Better / (Worse)
                                                             ----------------------------                                       ----------------

                                                                                              2016                                                   2015 Change             % Change
                                                                                              ----                                                   ---- ------             --------

    Reported:                                                            (In thousands)

    Revenue

    Customer pay                                                                          $147,394                                               $137,623         $9,771                 7.1%

    Warranty                                                                                57,559                                                 53,498          4,061                 7.6%

    Wholesale parts                                                                         45,309                                                 45,012            297                 0.7%

    Internal, sublet and other                                                              95,792                                                 87,061          8,731                10.0%

    Total                                                                                 $346,054                                               $323,194        $22,860                 7.1%
                                                                                          ========                                               ========        =======

    Gross profit

    Customer pay                                                                           $80,358                                                $75,678         $4,680                 6.2%

    Warranty                                                                                31,326                                                 29,760          1,566                 5.3%

    Wholesale parts                                                                          7,941                                                  8,138          (197)              (2.4%)

    Internal, sublet and other                                                              46,375                                                 42,799          3,576                 8.4%

    Total                                                                                 $166,000                                               $156,375         $9,625                 6.2%
                                                                                          ========                                               ========         ======

    Gross profit as a % of revenue

    Customer pay                                                                             54.5%                                                 55.0%          (50)

                                                                                                                                                                         bps

    Warranty                                                                                 54.4%                                                 55.6%         (120)

                                                                                                                                                                         bps

    Wholesale parts                                                                          17.5%                                                 18.1%          (60)

                                                                                                                                                                         bps

    Internal, sublet and other                                                               48.4%                                                 49.2%          (80)

                                                                                                                                                                         bps

    Total                                                                                    48.0%                                                 48.4%          (40)

                                                                                                                                                                         bps



                                                                                                         Sonic Automotive, Inc.
                                                                                                   Results of Operations (Unaudited)


    Parts, Service and Collision Repair ("Fixed Operations")


                                                             Three Months Ended March 31,                                       Better / (Worse)
                                                             ----------------------------                                       ----------------

                                                                                              2016                                                   2015 Change             % Change
                                                                                              ----                                                   ---- ------             --------

    Same Store:                                                          (In thousands)

    Revenue

    Customer pay                                                                          $147,394                                               $134,636        $12,758                 9.5%

    Warranty                                                                                57,559                                                 52,694          4,865                 9.2%

    Wholesale parts                                                                         45,309                                                 44,201          1,108                 2.5%

    Internal, sublet and other                                                              95,792                                                 85,742         10,050                11.7%

    Total                                                                                 $346,054                                               $317,273        $28,781                 9.1%
                                                                                          ========                                               ========        =======

    Gross profit

    Customer pay                                                                           $80,358                                                $74,050         $6,308                 8.5%

    Warranty                                                                                31,282                                                 29,300          1,982                 6.8%

    Wholesale parts                                                                          7,941                                                  7,988           (47)              (0.6%)

    Internal, sublet and other                                                              46,068                                                 42,165          3,903                 9.3%

    Total                                                                                 $165,649                                               $153,503        $12,146                 7.9%
                                                                                          ========                                               ========        =======

    Gross profit as a % of revenue

    Customer pay                                                                             54.5%                                                 55.0%          (50)

                                                                                                                                                                         bps

    Warranty                                                                                 54.3%                                                 55.6%         (130)

                                                                                                                                                                         bps

    Wholesale parts                                                                          17.5%                                                 18.1%          (60)

                                                                                                                                                                         bps

    Internal, sublet and other                                                               48.1%                                                 49.2%         (110)

                                                                                                                                                                         bps

    Total                                                                                    47.9%                                                 48.4%          (50)

                                                                                                                                                                         bps



                                                                                    Sonic Automotive, Inc.
                                                                               Results of Operations (Unaudited)


    Finance, Insurance and Other, Net ("F&I")


                                                  Three Months Ended March 31,                                   Better / (Worse)
                                                  ----------------------------                                   ----------------

                                                                                  2016                                               2015 Change        % Change
                                                                                  ----                                               ---- ------        --------

                                                   (In thousands, except per unit data)

    Reported:

    Revenue                                                                    $81,273                                            $74,600        $6,673          8.9%

    Gross profit per retail unit (excludes fleet)                               $1,366                                             $1,254          $112          8.9%



                                                  Three Months Ended March 31,                                   Better / (Worse)
                                                  ----------------------------                                   ----------------

                                                                                  2016                                               2015 Change        % Change
                                                                                  ----                                               ---- ------        --------

                                                   (In thousands, except per unit data)

    Same Store:

    Revenue                                                                    $80,852                                            $73,689        $7,163          9.7%

    Gross profit per retail unit (excludes fleet)                               $1,359                                             $1,255          $104          8.3%



                                                                                              Sonic Automotive, Inc.
                                                                                        Results of Operations (Unaudited)


    Selling, General and Administrative ("SG&A") Expenses


                                                          Three Months Ended March 31,                                    Better / (Worse)
                                                          ----------------------------                                    ----------------

                                                                                          2016                                                 2015  Change               % Change
                                                                                          ----                                                 ---- ------                --------

                                                                      (In thousands)

    Reported:

    Compensation                                                                      $169,041                                             $161,858          $(7,183)              (4.4%)

    Advertising                                                                         15,347                                               15,332              (15)              (0.1%)

    Rent                                                                                18,720                                               18,254             (466)              (2.6%)

    Other                                                                               81,267                                               75,418           (5,849)              (7.8%)
                                                                                        ------                                               ------

    Total                                                                             $284,375                                             $270,862         $(13,513)              (5.0%)
                                                                                      --------                                             --------          --------


    Total pre-tax adjustments                                                          (6,042)                                             (1,051)            4,991                   NM
                                                                                        ------                                               ------             -----

    Adjusted SG&A                                                                     $278,333                                             $269,811           (8,522)              (3.2%)
                                                                                      ========                                             ========            ======


    SG&A expenses as a % of gross profit

    Compensation                                                                         49.0%                                               48.3%             (70)

                                                                                                                                                                      bps

    Advertising                                                                           4.4%                                                4.6%               20

                                                                                                                                                                      bps

    Rent                                                                                  5.4%                                                5.4%                0

                                                                                                                                                                      bps

    Other                                                                                23.6%                                               22.6%            (100)

                                                                                                                                                                      bps

    Total                                                                                82.4%                                               80.9%            (150)

                                                                                                                                                                      bps



    Total pre-tax adjustments .                                                         (1.8%)                                              (0.3%)              150

                                                                                                                                                                      bps


    Adjusted SG&A as a % of gross profit                                                 80.6%                                               80.6%                0

                                                                                                                                                                      bps



    NM = Not meaningful

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sonic-automotive-inc-reports-record-q1-results-300256742.html

SOURCE Sonic Automotive, Inc.