EX-12.1 2 d444361dex121.htm EX-12.1

Exhibit 12.1

SONIC AUTOMOTIVE, INC. AND SUBSIDIARIES

RATIO OF EARNINGS TO FIXED CHARGES

|  | Year Ended December 31, |
(In thousands) |  | 2012 |  |  | 2011 |  |  | 2010 |  |  | 2009 |  |  | 2008 |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, including floor plan interest (1) |  | $ | 83,626 |  |  | $ | 90,894 |  |  | $ | 100,990 |  |  | $ | 114,221 |  |  | $ | 121,057 |
Capitalized interest |  |  | 1,198 |  |  |  | 2,290 |  |  |  | 2,330 |  |  |  | 702 |  |  |  | 1,543 |
Rent expense (interest factor) |  |  | 25,495 |  |  |  | 27,942 |  |  |  | 28,962 |  |  |  | 29,541 |  |  |  | 29,660 |
Total fixed charges |  |  | 110,319 |  |  |  | 121,126 |  |  |  | 132,282 |  |  |  | 144,464 |  |  |  | 152,260 |
Income from continuing operations before income taxes and cumulative effect of change in accounting principle |  |  | 141,233 |  |  |  | 133,262 |  |  |  | 83,092 |  |  |  | 32,537 |  |  |  | (755,754 | )
Add: Fixed charges |  |  | 110,319 |  |  |  | 121,126 |  |  |  | 132,282 |  |  |  | 144,464 |  |  |  | 152,260 |
Less: Capitalized interest |  |  | (1,198 | ) |  |  | (2,290 | ) |  |  | (2,330 | ) |  |  | (702 | ) |  |  | (1,543 | )
Income from continuing operations before income taxes and cumulative effect of change in accounting principle & fixed charges |  | $ | 250,354 |  |  | $ | 252,098 |  |  | $ | 213,044 |  |  | $ | 176,299 |  |  | $ | (605,037 | )
Ratio of earnings to fixed charges |  |  | 2.3 x |  |  |  | 2.1 x |  |  |  | 1.6 x |  |  |  | 1.2 x |  |  |  | (757,297 | ) (2)

(1) | Includes interest expense associated with discontinued operations.

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