EX-12.1 2 d293233dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

SONIC AUTOMOTIVE, INC. AND SUBSIDIARIES

RATIO OF EARNINGS TO FIXED CHARGES

Exhibit 12.1

(In thousands) |  | 2011 |  |  | 2010 |  |  | 2009 |  |  | 2008 |  |  | 2007 |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, excluding floor plan interest |  | $ | 71,255 |  |  | $ | 79,032 |  |  | $ | 92,897 |  |  | $ | 72,417 |  |  | $ | 47,330 |
Capitalized interest |  |  | 2,290 |  |  |  | 2,330 |  |  |  | 702 |  |  |  | 1,543 |  |  |  | 2,463 |
Rent expense (interest factor) |  |  | 30,398 |  |  |  | 31,451 |  |  |  | 32,013 |  |  |  | 32,085 |  |  |  | 32,481 |
Total fixed charges |  |  | 103,943 |  |  |  | 112,813 |  |  |  | 125,612 |  |  |  | 106,045 |  |  |  | 82,274 |
Income from continuing operations before income taxes and cumulative effect of change in accounting principle |  |  | 126,029 |  |  |  | 78,421 |  |  |  | 27,892 |  |  |  | (756,117 | ) |  |  | 172,137 |
Add: Fixed charges |  |  | 103,943 |  |  |  | 112,813 |  |  |  | 125,612 |  |  |  | 106,045 |  |  |  | 82,274 |
Less: Capitalized interest |  |  | (2,290 | ) |  |  | (2,330 | ) |  |  | (702 | ) |  |  | (1,543 | ) |  |  | (2,463 | )
Income from continuing operations before income taxes and cumulative effect of change in accounting principle & fixed charges |  | $ | 227,682 |  |  | $ | 188,904 |  |  | $ | 152,802 |  |  | $ | (651,615 | ) |  | $ | 251,948 |
Ratio of earnings to fixed charges |  |  | 2.2 x |  |  |  | 1.7 x |  |  |  | 1.2 x |  |  |  | (757,660 | )(1) |  |  | 3.1 x |

(1) | Reflects deficiency of earnings available to cover fixed charges. Because of the deficiency, ratio information is not provided.