EX-99.1 2 d879229dex991.htm EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Sonic Automotive, Inc. Reports Record Results and Launch of EchoPark® Automotive!

Adjusted Continuing Operations Quarterly EPS of $0.63

Fourth Quarter 2014 Results

| • |  | Record Q4 new retail units of 34,755, up 2.2%, over the prior year quarter

| • |  | Record Q4 pre-owned units and gross profit of 26,406 and $37.8 million, respectively

| • |  | Record Q4 fixed operations gross profit of $156.3 million, up 2.4% over the prior year quarter

| • |  | Record Q4 total gross profit of $348.5 million, up 2.9% over the prior year quarter

| • |  | EchoPark® stores in Denver open for business

| • |  | One Sonic-One Experience launched in Charlotte

Full Year 2014 Results

| • |  | Retailed an annual record new retail and pre-owned units of 135,932 and 110,113, respectively

| • |  | Record annual pre-owned gross profit of $157.2 million

| • |  | Record annual fixed operations gross profit of $623.5 million

| • |  | Record annual total gross profit of $1.4 billion

| • |  | Near record pre-tax income from continuing operations of $161.7 million

CHARLOTTE, N.C. – February 24, 2015 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported adjusted net income from continuing operations for the fourth quarter of 2014 of $32.5 million, or $0.63 per diluted share. Included in these adjusted amounts are pre-tax expenses of $7.1 million, or $0.08 per diluted share, related to the Company’s EchoPark® initiative and $3.8 million, or $0.05 per diluted share, related to its One Sonic-One Experience initiative.

Adjusted net income from continuing operations for the fourth quarter of 2013 was $35.6 million, or $0.67 per diluted share. Included in these adjusted amounts are pre-tax expenses of $2.2 million, or $0.03 per diluted share, related to the Company’s EchoPark® initiative and $2.1 million, or $0.02 per diluted share, related to its One Sonic-One Experience initiative.

On a GAAP basis, net income from continuing operations and related diluted earnings per share for the fourth quarter 2014 were $27.0 million and $0.52 per share, respectively, compared to $29.6 million and $0.55 per diluted share for the fourth quarter of 2013. See the accompanying tables for details of quarterly adjustments.

Sonic reported full year 2014 adjusted net income from continuing operations of $100.0 million, or $1.90 per diluted share, that includes expenses of $15.7 million, or $0.18 per diluted share, related to the Company’s EchoPark® initiative and $10.4 million, or $0.12 per diluted share, related to its One Sonic-One Experience initiative.

For the full year of 2013, Sonic reported adjusted net income from continuing operations of $108.4 million, or $2.03 per diluted share that includes expenses of $5.5 million, or $0.07 per diluted share, related to EchoPark® and $6.7 million, or $0.08 per diluted share, related its One Sonic-One Experience initiative.

On a GAAP basis, net income from continuing operations for full year of 2014 was $98.6 million, or $1.87 per diluted share, compared to full year 2013 results of $84.7 million, or $1.59 per diluted share. See the accompanying tables for details of annual adjustments.

Jeff Dyke, Sonic’s EVP of Operations, stated, “I could not be more pleased with our team’s performance in the fourth quarter and for the year. We started 2014 with a huge calendar including launching both EchoPark® and One Sonic-One Experience all in the fourth quarter of 2014. The amount of preparation and effort that went into launching these critical programs was second to none and I want to personally thank everyone for the hard work and dedication it took to successfully bring both projects to life. We look forward to sharing our progress as the projects gain momentum. Despite the time and energy dedicated to the EchoPark® and One Sonic-One Experience initiatives, our operations team was able to turn in a record breaking quarter and year. December was the biggest gross and profit month in our Company’s history for any year or store count!

We expect 2015 to be another great year as our team works diligently to deliver on our goals with EchoPark® and One Sonic-One Experience. We are confident that as the year progresses we will be able to announce our second market for both EchoPark® and One Sonic-One Experience.”

2015 Outlook

B. Scott Smith, the Company’s President, noted, “I am very pleased with the performance of our team in the fourth quarter, especially considering the various initiatives we have tasked the team with during the year. In addition to our internal initiatives, during the fourth quarter we purchased Cherry Creek Chevrolet and Land Rover of Roaring Fork, both located in the Denver, Colorado market. We have also been awarded Mercedes Benz and Audi add points during the year. The Mercedes Benz add point is located in McKinney, Texas and we believe it will be operational by the second quarter of 2016. The Audi add point is located in the Pensacola, Florida area and we expect opening this point in late 2016. The additions of these premium luxury brands will prove to augment our existing luxury brand portfolio. We are dedicated to our EchoPark®, One Sonic–One Experience and growth through acquisitions initiatives and will continue to invest in these initiatives in 2015. We expect 2015 to continue to be favorable to dealers and anticipate new vehicle industry volume to be between 16.5 million and 17.0 million units. We project diluted earnings per share from continuing operations for 2015 to be between $1.85 and $1.95 per share. Excluding the effects of EchoPark on this range, adjusted diluted earnings per share from continuing operations from our historical franchised group of stores is expected to be between $2.01 and $2.11 per share. We will have additional comments on our 2015 outlook in our earnings call later today.”

Fourth 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: 74193723

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: 74193723

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 future success and impacts from the implementation of our planned customer experience and stand-alone pre-owned store 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, 2013. The Company does not undertake any obligation to update forward-looking information.

###

Contact: | Heath Byrd, Chief Financial Officer (704) 566-2400

| C.G. Saffer, Vice President and Chief Accounting Officer (704) 566-2439

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.

|  | Fourth Quarter Ended December 31, |  |  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
|  | (In thousands, except per share and unit data) |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New retail vehicles |  | $ | 1,337,896 |  |  | $ | 1,299,444 |  |  | $ | 5,046,010 |  |  | $ | 4,819,787 |
Fleet vehicles |  |  | 12,899 |  |  |  | 38,254 |  |  |  | 78,019 |  |  |  | 169,398 |
Total new vehicles |  |  | 1,350,795 |  |  |  | 1,337,698 |  |  |  | 5,124,029 |  |  |  | 4,989,185 |
Used vehicles |  |  | 562,993 |  |  |  | 551,028 |  |  |  | 2,310,247 |  |  |  | 2,176,034 |
Wholesale vehicles |  |  | 38,361 |  |  |  | 40,772 |  |  |  | 166,158 |  |  |  | 175,328 |
Total vehicles |  |  | 1,952,149 |  |  |  | 1,929,498 |  |  |  | 7,600,434 |  |  |  | 7,340,547 |
Parts, service and collision repair |  |  | 322,924 |  |  |  | 316,888 |  |  |  | 1,296,570 |  |  |  | 1,230,178 |
Finance, insurance and other, net |  |  | 76,755 |  |  |  | 68,983 |  |  |  | 300,095 |  |  |  | 272,443 |
Total revenues |  |  | 2,351,828 |  |  |  | 2,315,369 |  |  |  | 9,197,099 |  |  |  | 8,843,168 |
Gross profit |  |  | 348,464 |  |  |  | 338,700 |  |  |  | 1,365,900 |  |  |  | 1,301,607 |
Selling, general and administrative expenses |  |  | (264,402 | ) |  |  | (254,647 | ) |  |  | (1,067,433 | ) |  |  | (1,003,125 | )
Impairment charges |  |  | (6,379 | ) |  |  | (9,803 | ) |  |  | (6,594 | ) |  |  | (9,872 | )
Depreciation and amortization |  |  | (15,213 | ) |  |  | (14,986 | ) |  |  | (58,260 | ) |  |  | (54,007 | )
Operating income (loss) |  |  | 62,470 |  |  |  | 59,264 |  |  |  | 233,613 |  |  |  | 234,603 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, floor plan |  |  | (4,852 | ) |  |  | (5,688 | ) |  |  | (18,793 | ) |  |  | (21,954 | )
Interest expense, other, net |  |  | (12,614 | ) |  |  | (13,183 | ) |  |  | (53,190 | ) |  |  | (55,485 | )
Other income (expense), net |  |  | (2 | ) |  |  | 1 |  |  |  | 97 |  |  |  | (28,143 | )
Total other income (expense) |  |  | (17,468 | ) |  |  | (18,870 | ) |  |  | (71,886 | ) |  |  | (105,582 | )
Income (loss) from continuing operations before taxes |  |  | 45,002 |  |  |  | 40,394 |  |  |  | 161,727 |  |  |  | 129,021 |
Provision for income taxes - benefit (expense) |  |  | (18,045 | ) |  |  | (10,832 | ) |  |  | (63,168 | ) |  |  | (44,343 | )
Income (loss) from continuing operations |  |  | 26,957 |  |  |  | 29,562 |  |  |  | 98,559 |  |  |  | 84,678 |
Income (loss) from discontinued operations |  |  | (831 | ) |  |  | (1,478 | ) |  |  | (1,342 | ) |  |  | (3,060 | )
Net income (loss) |  | $ | 26,126 |  |  | $ | 28,084 |  |  | $ | 97,217 |  |  | $ | 81,618 |
Diluted earnings (loss) per common share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings (loss) per share from continuing operations |  | $ | 0.52 |  |  | $ | 0.55 |  |  | $ | 1.87 |  |  | $ | 1.59 |
Earnings (loss) per share from discontinued operations |  |  | (0.02 | ) |  |  | (0.02 | ) |  |  | (0.03 | ) |  |  | (0.06 | )
Earnings (loss) per common share |  | $ | 0.50 |  |  | $ | 0.53 |  |  | $ | 1.84 |  |  | $ | 1.53 |
Weighted average common shares outstanding |  |  | 51,834 |  |  |  | 52,974 |  |  |  | 52,563 |  |  |  | 52,941 |
Gross Margin Data (Continuing Operations): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New retail vehicles |  |  | 5.9 | % |  |  | 6.3 | % |  |  | 5.7 | % |  |  | 5.9 | %
Fleet vehicles |  |  | 1.1 | % |  |  | 2.2 | % |  |  | 1.9 | % |  |  | 2.6 | %
Total new vehicles |  |  | 5.8 | % |  |  | 6.2 | % |  |  | 5.6 | % |  |  | 5.8 | %
Used vehicles |  |  | 6.7 | % |  |  | 6.5 | % |  |  | 6.8 | % |  |  | 6.9 | %
Wholesale vehicles |  |  | (2.9 | %) |  |  | (3.9 | %) |  |  | (2.2 | %) |  |  | (4.5 | %)
Parts, service and collision repair |  |  | 48.4 | % |  |  | 48.2 | % |  |  | 48.1 | % |  |  | 48.5 | %
Finance, insurance and other |  |  | 100.0 | % |  |  | 100.0 | % |  |  | 100.0 | % |  |  | 100.0 | %
Overall gross margin |  |  | 14.8 | % |  |  | 14.6 | % |  |  | 14.9 | % |  |  | 14.7 | %
SG&A Expenses (Continuing Operations): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation (4) |  | $ | 155,382 |  |  | $ | 151,704 |  |  | $ | 638,875 |  |  | $ | 601,495 |
Advertising |  |  | 15,409 |  |  |  | 15,327 |  |  |  | 57,437 |  |  |  | 56,609 |
Rent |  |  | 18,384 |  |  |  | 17,632 |  |  |  | 73,707 |  |  |  | 73,976 |
Other (5) |  |  | 75,227 |  |  |  | 69,984 |  |  |  | 297,414 |  |  |  | 271,045 |
Total SG&A expenses |  | $ | 264,402 |  |  | $ | 254,647 |  |  | $ | 1,067,433 |  |  | $ | 1,003,125 |
SG&A expenses as % of gross profit |  |  | 75.9 | % |  |  | 75.2 | % |  |  | 78.1 | % |  |  | 77.1 | %
Operating Margin % |  |  | 2.7 | % |  |  | 2.6 | % |  |  | 2.5 | % |  |  | 2.7 | %
Unit Data (Continuing Operations): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New retail units |  |  | 34,755 |  |  |  | 34,001 |  |  |  | 135,932 |  |  |  | 132,363 |
Fleet units |  |  | 352 |  |  |  | 1,250 |  |  |  | 2,485 |  |  |  | 5,911 |
Total new units |  |  | 35,107 |  |  |  | 35,251 |  |  |  | 138,417 |  |  |  | 138,274 |
Used units |  |  | 26,406 |  |  |  | 26,354 |  |  |  | 110,113 |  |  |  | 107,054 |
Wholesale units |  |  | 6,912 |  |  |  | 6,670 |  |  |  | 29,946 |  |  |  | 29,961 |

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Per Share Data

|  | Fourth Quarter Ended December 31, 2014 |
|  |  |  |  | Income (Loss) |  |  | Income (Loss) |  |  |  |  |  |  |
|  |  |  |  | From Continuing |  |  | From Discontinued |  |  |  |  |  |  |
|  |  |  |  | Operations |  |  | Average |  |  | 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 |  |  | 51,272 |  |  | $ | 26,957 |  |  |  |  |  |  | $ | (831 | ) |  |  |  |  |  | $ | 26,126 |  |  |  |  |
Effect of participating securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-vested restricted stock and stock units |  |  |  |  |  |  | (86 | ) |  |  |  |  |  |  | — |  |  |  |  |  |  |  | (86 | ) |  |  |  |
Basic earnings (loss) and shares |  |  | 51,272 |  |  | $ | 26,871 |  |  | $ | 0.52 |  |  | $ | (831 | ) |  | $ | (0.01 | ) |  | $ | 26,040 |  |  | $ | 0.51 |
Effect of dilutive securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stock compensation plans |  |  | 562 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted earnings (loss) and shares (1) |  |  | 51,834 |  |  | $ | 26,871 |  |  | $ | 0.52 |  |  | $ | (831 | ) |  | $ | (0.02 | ) |  | $ | 26,040 |  |  | $ | 0.50 |
Adjustments (net of tax): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fire and severe storm damage |  |  |  |  |  | $ | 594 |  |  | $ | 0.01 |  |  | $ | — |  |  | $ | — |  |  | $ | 594 |  |  | $ | 0.01 |
Legal and other |  |  |  |  |  |  | 355 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 355 |  |  |  | — |
Impairment charges |  |  |  |  |  |  | 3,943 |  |  |  | 0.08 |  |  |  | — |  |  |  | — |  |  |  | 3,943 |  |  |  | 0.08 |
Gain on disposal of franchises |  |  |  |  |  |  | (157 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (157 | ) |  |  | — |
Permanent tax difference from disposals |  |  |  |  |  |  | 853 |  |  |  | 0.02 |  |  |  | — |  |  |  |  |  |  |  | 853 |  |  |  | 0.02 |
Total adjustments |  |  |  |  |  | $ | 5,588 |  |  | $ | 0.11 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,588 |  |  | $ | 0.11 |
Adjusted: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings (loss) and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted earnings (loss) per share |  |  |  |  |  | $ | 32,545 |  |  | $ | 0.63 |  |  | $ | (831 | ) |  | $ | (0.02 | ) |  | $ | 31,714 |  |  | $ | 0.61 |

(1) | Expenses attributable to the EchoPark® initiative were $0.08 per fully diluted share in the fourth quarter of 2014.

|  | Fourth Quarter Ended December 31, 2013 |
|  |  |  |  | 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 |  |  | 52,492 |  |  | $ | 29,562 |  |  |  |  |  |  | $ | (1,478 | ) |  |  |  |  |  | $ | 28,084 |  |  |  |  |
Effect of participating securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-vested restricted stock and stock units |  |  |  |  |  |  | (208 | ) |  |  |  |  |  |  | — |  |  |  |  |  |  |  | (208 | ) |  |  |  |
Basic earnings (loss) and shares |  |  | 52,492 |  |  | $ | 29,354 |  |  | $ | 0.56 |  |  | $ | (1,478 | ) |  | $ | (0.03 | ) |  | $ | 27,876 |  |  | $ | 0.53 |
Effect of dilutive securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stock compensation plans |  |  | 482 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted earnings (loss) and shares (2) |  |  | 52,974 |  |  | $ | 29,354 |  |  | $ | 0.55 |  |  | $ | (1,478 | ) |  | $ | (0.02 | ) |  | $ | 27,876 |  |  | $ | 0.53 |
Adjustments (net of tax): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impairment Charges |  |  |  |  |  | $ | 6,022 |  |  | $ | 0.11 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,022 |  |  | $ | 0.11 |
Effect of two-class method & rounding |  |  |  |  |  |  | — |  |  |  | 0.01 |  |  |  | — |  |  |  | (0.01 | ) |  |  | — |  |  |  | — |
Total adjustments |  |  |  |  |  | $ | 6,022 |  |  | $ | 0.12 |  |  | $ | — |  |  | $ | (0.01 | ) |  | $ | 6,022 |  |  | $ | 0.11 |
Adjusted: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings (loss) and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted earnings (loss) per share |  |  |  |  |  | $ | 35,584 |  |  | $ | 0.67 |  |  | $ | (1,478 | ) |  | $ | (0.03 | ) |  | $ | 34,106 |  |  | $ | 0.64 |

(2) | Expenses attributable to the EchoPark® initiative were $0.03 per fully diluted share in the fourth quarter of 2013.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Per Share Data

|  | Year Ended December 31, 2014 |
|  |  |  |  | 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 |  |  | 52,065 |  |  | $ | 98,559 |  |  |  |  |  |  | $ | (1,342 | ) |  |  |  |  |  | $ | 97,217 |  |  |  |  |
Effect of participating securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-vested restricted stock and stock units |  |  |  |  |  |  | (311 | ) |  |  |  |  |  |  | — |  |  |  |  |  |  |  | (311 | ) |  |  |  |
Basic earnings (loss) and shares |  |  | 52,065 |  |  | $ | 98,248 |  |  | $ | 1.89 |  |  | $ | (1,342 | ) |  | $ | (0.03 | ) |  | $ | 96,906 |  |  | $ | 1.86 |
Effect of dilutive securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stock compensation plans |  |  | 498 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted earnings (loss) and shares (3) |  |  | 52,563 |  |  | $ | 98,248 |  |  | $ | 1.87 |  |  | $ | (1,342 | ) |  | $ | (0.03 | ) |  | $ | 96,906 |  |  | $ | 1.84 |
Adjustments (net of tax): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fire and severe storm damage |  |  |  |  |  | $ | 2,685 |  |  | $ | 0.05 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,685 |  |  | $ | 0.05 |
Legal and other |  |  |  |  |  |  | 749 |  |  |  | 0.01 |  |  |  | — |  |  |  | — |  |  |  | 749 |  |  |  | 0.01 |
Impairment charges |  |  |  |  |  |  | 4,459 |  |  |  | 0.08 |  |  |  | — |  |  |  | — |  |  |  | 4,459 |  |  |  | 0.08 |
Gain on disposal of franchises |  |  |  |  |  |  | (7,273 | ) |  |  | (0.14 | ) |  |  | — |  |  |  | — |  |  |  | (7,273 | ) |  |  | (0.14 | )
Permanent tax difference from disposals |  |  |  |  |  |  | 853 |  |  |  | 0.02 |  |  |  | — |  |  |  | — |  |  |  | 853 |  |  |  | 0.02 |
Lease exit adjustments |  |  |  |  |  |  | — |  |  |  | — |  |  |  | (844 | ) |  |  | (0.02 | ) |  |  | (844 | ) |  |  | (0.02 | )
Effect of two-class method & rounding |  |  |  |  |  |  | — |  |  |  | 0.01 |  |  |  | — |  |  |  | 0.01 |  |  |  | — |  |  |  | 0.02 |
Total adjustments |  |  |  |  |  | $ | 1,473 |  |  | $ | 0.03 |  |  | $ | (844 | ) |  | $ | (0.01 | ) |  | $ | 629 |  |  | $ | 0.02 |
Adjusted: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings (loss) and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted earnings (loss) per share |  |  |  |  |  | $ | 100,032 |  |  | $ | 1.90 |  |  | $ | (2,186 | ) |  | $ | (0.04 | ) |  | $ | 97,846 |  |  | $ | 1.86 |

(3) | Expenses attributable to the EchoPark® initiative were $0.18 per fully diluted share in the year ended December 31, 2014.

|  | Year Ended December 31, 2013 |
|  |  |  |  | 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 |  |  | 52,556 |  |  | $ | 84,678 |  |  |  |  |  |  | $ | (3,060 | ) |  |  |  |  |  | $ | 81,618 |  |  |  |  |
Effect of participating securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-vested restricted stock and stock units |  |  |  |  |  |  | (601 | ) |  |  |  |  |  |  | — |  |  |  |  |  |  |  | (601 | ) |  |  |  |
Basic earnings (loss) and shares |  |  | 52,556 |  |  | $ | 84,077 |  |  | $ | 1.60 |  |  | $ | (3,060 | ) |  | $ | (0.06 | ) |  | $ | 81,017 |  |  | $ | 1.54 |
Effect of dilutive securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stock compensation plans |  |  | 385 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted earnings (loss) and shares (4) |  |  | 52,941 |  |  | $ | 84,077 |  |  | $ | 1.59 |  |  | $ | (3,060 | ) |  | $ | (0.06 | ) |  | $ | 81,017 |  |  | $ | 1.53 |
Adjustments (net of tax): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impairment Charges |  |  |  |  |  | $ | 6,022 |  |  | $ | 0.11 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,022 |  |  | $ | 0.11 |
Double-carry interest |  |  |  |  |  |  | 17,704 |  |  |  | 0.33 |  |  |  | — |  |  |  | — |  |  |  | 17,704 |  |  |  | 0.33 |
Effect of two-class method & rounding |  |  |  |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.01 |  |  |  | — |  |  |  | 0.01 |
Total adjustments |  |  |  |  |  | $ | 23,726 |  |  | $ | 0.44 |  |  | $ | — |  |  | $ | 0.01 |  |  | $ | 23,726 |  |  | $ | 0.45 |
Adjusted: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings (loss) and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted earnings (loss) per share |  |  |  |  |  | $ | 108,404 |  |  | $ | 2.03 |  |  | $ | (3,060 | ) |  | $ | (0.05 | ) |  | $ | 105,344 |  |  | $ | 1.98 |

(4) | Expenses attributable to the EchoPark® initiative were $0.07 per fully diluted share in the year ended December 31, 2014.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

New Vehicles

|  | Fourth Quarter Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except units and per unit data) |
Reported: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 1,350,795 |  |  | $ | 1,337,698 |  |  | $ | 13,097 |  |  |  | 1.0 | %
Gross profit |  | $ | 78,734 |  |  | $ | 82,936 |  |  | $ | (4,202 | ) |  |  | (5.1 | %)
Unit sales |  |  | 35,107 |  |  |  | 35,251 |  |  |  | (144 | ) |  |  | (0.4 | %)
Revenue per unit |  | $ | 38,477 |  |  | $ | 37,948 |  |  | $ | 529 |  |  |  | 1.4 | %
Gross profit per unit |  | $ | 2,243 |  |  | $ | 2,353 |  |  | $ | (110 | ) |  |  | (4.7 | %)
Gross profit as a % of revenue |  |  | 5.8 | % |  |  | 6.2 | % |  |  | (40 | ) bps |  |  |  |
|  | Year Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except units and per unit data) |
Reported: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 5,124,029 |  |  | $ | 4,989,185 |  |  | $ | 134,844 |  |  |  | 2.7 | %
Gross profit |  | $ | 288,626 |  |  | $ | 289,603 |  |  | $ | (977 | ) |  |  | (0.3 | %)
Unit sales |  |  | 138,417 |  |  |  | 138,274 |  |  |  | 143 |  |  |  | 0.1 | %
Revenue per unit |  | $ | 37,019 |  |  | $ | 36,082 |  |  | $ | 937 |  |  |  | 2.6 | %
Gross profit per unit |  | $ | 2,085 |  |  | $ | 2,094 |  |  | $ | (9 | ) |  |  | (0.4 | %)
Gross profit as a % of revenue |  |  | 5.6 | % |  |  | 5.8 | % |  |  | (20 | ) bps |  |  |  |
|  | Fourth Quarter Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except units and per unit data) |
Same Store: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 1,338,612 |  |  | $ | 1,292,378 |  |  | $ | 46,234 |  |  |  | 3.6 | %
Gross profit |  | $ | 78,136 |  |  | $ | 80,604 |  |  | $ | (2,468 | ) |  |  | (3.1 | %)
Unit sales |  |  | 34,723 |  |  |  | 34,006 |  |  |  | 717 |  |  |  | 2.1 | %
Revenue per unit |  | $ | 38,551 |  |  | $ | 38,004 |  |  | $ | 547 |  |  |  | 1.4 | %
Gross profit per unit |  | $ | 2,250 |  |  | $ | 2,370 |  |  | $ | (120 | ) |  |  | (5.1 | %)
Gross profit as a % of revenue |  |  | 5.8 | % |  |  | 6.2 | % |  |  | (40 | ) bps |  |  |  |
|  | Year Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except units and per unit data) |
Same Store: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 4,953,201 |  |  | $ | 4,818,937 |  |  | $ | 134,264 |  |  |  | 2.8 | %
Gross profit |  | $ | 278,938 |  |  | $ | 280,225 |  |  | $ | (1,287 | ) |  |  | (0.5 | %)
Unit sales |  |  | 134,059 |  |  |  | 133,578 |  |  |  | 481 |  |  |  | 0.4 | %
Revenue per unit |  | $ | 36,948 |  |  | $ | 36,076 |  |  | $ | 872 |  |  |  | 2.4 | %
Gross profit per unit |  | $ | 2,081 |  |  | $ | 2,098 |  |  | $ | (17 | ) |  |  | (0.8 | %)
Gross profit as a % of revenue |  |  | 5.6 | % |  |  | 5.8 | % |  |  | (20 | ) bps |  |  |  |

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Used Vehicles

|  | Fourth Quarter Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except units and per unit data) |
Reported: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 562,993 |  |  | $ | 551,028 |  |  | $ | 11,965 |  |  |  | 2.2 | %
Gross profit |  | $ | 37,834 |  |  | $ | 35,784 |  |  | $ | 2,050 |  |  |  | 5.7 | %
Unit sales |  |  | 26,406 |  |  |  | 26,354 |  |  |  | 52 |  |  |  | 0.2 | %
Revenue per unit |  | $ | 21,321 |  |  | $ | 20,909 |  |  | $ | 412 |  |  |  | 2.0 | %
Gross profit per unit |  | $ | 1,433 |  |  | $ | 1,358 |  |  | $ | 75 |  |  |  | 5.5 | %
Gross profit as a % of revenue |  |  | 6.7 | % |  |  | 6.5 | % |  |  | 20 | bps |  |  |  |
|  | Year Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except units and per unit data) |
Reported: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 2,310,247 |  |  | $ | 2,176,034 |  |  | $ | 134,213 |  |  |  | 6.2 | %
Gross profit |  | $ | 157,246 |  |  | $ | 150,400 |  |  | $ | 6,846 |  |  |  | 4.6 | %
Unit sales |  |  | 110,113 |  |  |  | 107,054 |  |  |  | 3,059 |  |  |  | 2.9 | %
Revenue per unit |  | $ | 20,981 |  |  | $ | 20,327 |  |  | $ | 654 |  |  |  | 3.2 | %
Gross profit per unit |  | $ | 1,428 |  |  | $ | 1,405 |  |  | $ | 23 |  |  |  | 1.6 | %
Gross profit as a % of revenue |  |  | 6.8 | % |  |  | 6.9 | % |  |  | (10 | ) bps |  |  |  |
|  | Fourth Quarter Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except units and per unit data) |
Same Store: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 551,576 |  |  | $ | 529,846 |  |  | $ | 21,730 |  |  |  | 4.1 | %
Gross profit |  | $ | 36,945 |  |  | $ | 34,255 |  |  | $ | 2,690 |  |  |  | 7.9 | %
Unit sales |  |  | 25,784 |  |  |  | 25,322 |  |  |  | 462 |  |  |  | 1.8 | %
Revenue per unit |  | $ | 21,392 |  |  | $ | 20,924 |  |  | $ | 468 |  |  |  | 2.2 | %
Gross profit per unit |  | $ | 1,433 |  |  | $ | 1,353 |  |  | $ | 80 |  |  |  | 5.9 | %
Gross profit as a % of revenue |  |  | 6.7 | % |  |  | 6.5 | % |  |  | 20 | bps |  |  |  |
|  | Year Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except units and per unit data) |
Same Store: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 2,200,362 |  |  | $ | 2,085,069 |  |  | $ | 115,293 |  |  |  | 5.5 | %
Gross profit |  | $ | 150,990 |  |  | $ | 144,253 |  |  | $ | 6,737 |  |  |  | 4.7 | %
Unit sales |  |  | 105,057 |  |  |  | 102,597 |  |  |  | 2,460 |  |  |  | 2.4 | %
Revenue per unit |  | $ | 20,944 |  |  | $ | 20,323 |  |  | $ | 621 |  |  |  | 3.1 | %
Gross profit per unit |  | $ | 1,437 |  |  | $ | 1,406 |  |  | $ | 31 |  |  |  | 2.2 | %
Gross profit as a % of revenue |  |  | 6.9 | % |  |  | 6.9 | % |  |  | 0 | bps |  |  |  |

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Wholesale Vehicles

|  | Fourth Quarter Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except units and per unit data) |
Reported: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 38,361 |  |  | $ | 40,772 |  |  | $ | (2,411 | ) |  |  | (5.9 | %)
Gross profit (loss) |  | $ | (1,122 | ) |  | $ | (1,589 | ) |  | $ | 467 |  |  |  | 29.4 | %
Unit sales |  |  | 6,912 |  |  |  | 6,670 |  |  |  | 242 |  |  |  | 3.6 | %
Revenue per unit |  | $ | 5,550 |  |  | $ | 6,113 |  |  | $ | (563 | ) |  |  | (9.2 | %)
Gross profit (loss) per unit |  | $ | (162 | ) |  | $ | (238 | ) |  | $ | 76 |  |  |  | 31.9 | %
Gross profit (loss) as a % of revenue |  |  | (2.9 | %) |  |  | (3.9 | %) |  |  | 100 | bps |  |  |  |
|  | Year Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except units and per unit data) |
Reported: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 166,158 |  |  | $ | 175,328 |  |  | $ | (9,170 | ) |  |  | (5.2 | %)
Gross profit (loss) |  | $ | (3,616 | ) |  | $ | (7,931 | ) |  | $ | 4,315 |  |  |  | 54.4 | %
Unit sales |  |  | 29,946 |  |  |  | 29,961 |  |  |  | (15 | ) |  |  | (0.1 | %)
Revenue per unit |  | $ | 5,549 |  |  | $ | 5,852 |  |  | $ | (303 | ) |  |  | (5.2 | %)
Gross profit (loss) per unit |  | $ | (121 | ) |  | $ | (265 | ) |  | $ | 144 |  |  |  | 54.3 | %
Gross profit (loss) as a % of revenue |  |  | (2.2 | %) |  |  | (4.5 | %) |  |  | 230 | bps |  |  |  |
|  | Fourth Quarter Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except units and per unit data) |
Same Store: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 37,572 |  |  | $ | 39,745 |  |  | $ | (2,173 | ) |  |  | (5.5 | %)
Gross profit (loss) |  | $ | (939 | ) |  | $ | (1,493 | ) |  | $ | 554 |  |  |  | 37.1 | %
Unit sales |  |  | 6,803 |  |  |  | 6,478 |  |  |  | 325 |  |  |  | 5.0 | %
Revenue per unit |  | $ | 5,523 |  |  | $ | 6,135 |  |  | $ | (612 | ) |  |  | (10.0 | %)
Gross profit (loss) per unit |  | $ | (138 | ) |  | $ | (230 | ) |  | $ | 92 |  |  |  | 40.0 | %
Gross profit (loss) as a % of revenue |  |  | (2.5 | %) |  |  | (3.8 | %) |  |  | 130 | bps |  |  |  |
|  | Year Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except units and per unit data) |
Same Store: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 159,263 |  |  | $ | 170,489 |  |  | $ | (11,226 | ) |  |  | (6.6 | %)
Gross profit (loss) |  | $ | (3,175 | ) |  | $ | (7,305 | ) |  | $ | 4,130 |  |  |  | 56.5 | %
Unit sales |  |  | 28,885 |  |  |  | 29,092 |  |  |  | (207 | ) |  |  | (0.7 | %)
Revenue per unit |  | $ | 5,514 |  |  | $ | 5,860 |  |  | $ | (346 | ) |  |  | (5.9 | %)
Gross profit (loss) per unit |  | $ | (110 | ) |  | $ | (251 | ) |  | $ | 141 |  |  |  | 56.2 | %
Gross profit (loss) as a % of revenue |  |  | (2.0 | %) |  |  | (4.3 | %) |  |  | 230 | bps |  |  |  |

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Parts, Service and Collision Repair (“Fixed Operations”)

|  | Fourth Quarter Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands) |
Reported: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer pay |  | $ | 137,524 |  |  | $ | 139,443 |  |  | $ | (1,919 | ) |  |  | (1.4 | %)
Warranty |  |  | 52,396 |  |  |  | 50,572 |  |  |  | 1,824 |  |  |  | 3.6 | %
Wholesale parts |  |  | 46,615 |  |  |  | 44,468 |  |  |  | 2,147 |  |  |  | 4.8 | %
Internal, sublet and other |  |  | 86,389 |  |  |  | 82,405 |  |  |  | 3,984 |  |  |  | 4.8 | %
Total |  | $ | 322,924 |  |  | $ | 316,888 |  |  | $ | 6,036 |  |  |  | 1.9 | %
Gross profit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer pay |  | $ | 74,734 |  |  | $ | 76,315 |  |  | $ | (1,581 | ) |  |  | (2.1 | %)
Warranty |  |  | 29,135 |  |  |  | 26,694 |  |  |  | 2,441 |  |  |  | 9.1 | %
Wholesale parts |  |  | 8,042 |  |  |  | 8,084 |  |  |  | (42 | ) |  |  | (0.5 | %)
Internal, sublet and other |  |  | 44,353 |  |  |  | 41,493 |  |  |  | 2,860 |  |  |  | 6.9 | %
Total |  | $ | 156,264 |  |  | $ | 152,586 |  |  | $ | 3,678 |  |  |  | 2.4 | %
Gross profit as a % of revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer pay |  |  | 54.3 | % |  |  | 54.7 | % |  |  | (40 | ) bps |  |  |  |
Warranty |  |  | 55.6 | % |  |  | 52.8 | % |  |  | 280 | bps |  |  |  |
Wholesale parts |  |  | 17.3 | % |  |  | 18.2 | % |  |  | (90 | ) bps |  |  |  |
Internal, sublet and other |  |  | 51.3 | % |  |  | 50.4 | % |  |  | 90 | bps |  |  |  |
Total |  |  | 48.4 | % |  |  | 48.2 | % |  |  | 20 | bps |  |  |  |
|  | Year Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands) |
Reported: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer pay |  | $ | 565,144 |  |  | $ | 546,695 |  |  | $ | 18,449 |  |  |  | 3.4 | %
Warranty |  |  | 194,468 |  |  |  | 188,061 |  |  |  | 6,407 |  |  |  | 3.4 | %
Wholesale parts |  |  | 188,687 |  |  |  | 169,338 |  |  |  | 19,349 |  |  |  | 11.4 | %
Internal, sublet and other |  |  | 348,271 |  |  |  | 326,084 |  |  |  | 22,187 |  |  |  | 6.8 | %
Total |  | $ | 1,296,570 |  |  | $ | 1,230,178 |  |  | $ | 66,392 |  |  |  | 5.4 | %
Gross profit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer pay |  | $ | 309,885 |  |  | $ | 300,800 |  |  | $ | 9,085 |  |  |  | 3.0 | %
Warranty |  |  | 106,298 |  |  |  | 101,351 |  |  |  | 4,947 |  |  |  | 4.9 | %
Wholesale parts |  |  | 32,633 |  |  |  | 31,242 |  |  |  | 1,391 |  |  |  | 4.5 | %
Internal, sublet and other |  |  | 174,733 |  |  |  | 163,699 |  |  |  | 11,034 |  |  |  | 6.7 | %
Total |  | $ | 623,549 |  |  | $ | 597,092 |  |  | $ | 26,457 |  |  |  | 4.4 | %
Gross profit as a % of revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer pay |  |  | 54.8 | % |  |  | 55.0 | % |  |  | (20 | ) bps |  |  |  |
Warranty |  |  | 54.7 | % |  |  | 53.9 | % |  |  | 80 | bps |  |  |  |
Wholesale parts |  |  | 17.3 | % |  |  | 18.4 | % |  |  | (110 | ) bps |  |  |  |
Internal, sublet and other |  |  | 50.2 | % |  |  | 50.2 | % |  |  | 0 | bps |  |  |  |
Total |  |  | 48.1 | % |  |  | 48.5 | % |  |  | (40 | ) bps |  |  |  |

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Parts, Service and Collision Repair (“Fixed Operations”)

|  | Fourth Quarter Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands) |
Same Store: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer pay |  | $ | 135,913 |  |  | $ | 134,788 |  |  | $ | 1,125 |  |  |  | 0.8 | %
Warranty |  |  | 51,832 |  |  |  | 48,565 |  |  |  | 3,267 |  |  |  | 6.7 | %
Wholesale parts |  |  | 46,099 |  |  |  | 43,107 |  |  |  | 2,992 |  |  |  | 6.9 | %
Internal, sublet and other |  |  | 84,174 |  |  |  | 79,693 |  |  |  | 4,481 |  |  |  | 5.6 | %
Total |  | $ | 318,018 |  |  | $ | 306,153 |  |  | $ | 11,865 |  |  |  | 3.9 | %
Gross profit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer pay |  | $ | 73,891 |  |  | $ | 73,824 |  |  | $ | 67 |  |  |  | 0.1 | %
Warranty |  |  | 28,861 |  |  |  | 25,736 |  |  |  | 3,125 |  |  |  | 12.1 | %
Wholesale parts |  |  | 7,941 |  |  |  | 7,814 |  |  |  | 127 |  |  |  | 1.6 | %
Internal, sublet and other |  |  | 43,043 |  |  |  | 39,877 |  |  |  | 3,166 |  |  |  | 7.9 | %
Total |  | $ | 153,736 |  |  | $ | 147,251 |  |  | $ | 6,485 |  |  |  | 4.4 | %
Gross profit as a % of revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer pay |  |  | 54.4 | % |  |  | 54.8 | % |  |  | (40 | ) bps |  |  |  |
Warranty |  |  | 55.7 | % |  |  | 53.0 | % |  |  | 270 | bps |  |  |  |
Wholesale parts |  |  | 17.2 | % |  |  | 18.1 | % |  |  | (90 | ) bps |  |  |  |
Internal, sublet and other |  |  | 51.1 | % |  |  | 50.0 | % |  |  | 110 | bps |  |  |  |
Total |  |  | 48.3 | % |  |  | 48.1 | % |  |  | 20 | bps |  |  |  |
|  | Year Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands) |
Same Store: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer pay |  | $ | 538,930 |  |  | $ | 527,034 |  |  | $ | 11,896 |  |  |  | 2.3 | %
Warranty |  |  | 185,526 |  |  |  | 180,125 |  |  |  | 5,401 |  |  |  | 3.0 | %
Wholesale parts |  |  | 181,058 |  |  |  | 163,979 |  |  |  | 17,079 |  |  |  | 10.4 | %
Internal, sublet and other |  |  | 334,166 |  |  |  | 314,529 |  |  |  | 19,637 |  |  |  | 6.2 | %
Total |  | $ | 1,239,680 |  |  | $ | 1,185,667 |  |  | $ | 54,013 |  |  |  | 4.6 | %
Gross profit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer pay |  | $ | 296,160 |  |  | $ | 290,238 |  |  | $ | 5,922 |  |  |  | 2.0 | %
Warranty |  |  | 101,689 |  |  |  | 97,581 |  |  |  | 4,108 |  |  |  | 4.2 | %
Wholesale parts |  |  | 30,804 |  |  |  | 30,143 |  |  |  | 661 |  |  |  | 2.2 | %
Internal, sublet and other |  |  | 166,909 |  |  |  | 157,123 |  |  |  | 9,786 |  |  |  | 6.2 | %
Total |  | $ | 595,562 |  |  | $ | 575,085 |  |  | $ | 20,477 |  |  |  | 3.6 | %
Gross profit as a % of revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer pay |  |  | 55.0 | % |  |  | 55.1 | % |  |  | (10 | ) bps |  |  |  |
Warranty |  |  | 54.8 | % |  |  | 54.2 | % |  |  | 60 | bps |  |  |  |
Wholesale parts |  |  | 17.0 | % |  |  | 18.4 | % |  |  | (140 | ) bps |  |  |  |
Internal, sublet and other |  |  | 49.9 | % |  |  | 50.0 | % |  |  | (10 | ) bps |  |  |  |
Total |  |  | 48.0 | % |  |  | 48.5 | % |  |  | (50 | ) bps |  |  |  |

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Finance, Insurance and Other, Net (“F&I”)

|  | Fourth Quarter Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except per unit data) |
Reported: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 76,755 |  |  | $ | 68,983 |  |  | $ | 7,772 |  |  |  | 11.3 | %
Gross profit per retail unit (excludes fleet) |  | $ | 1,255 |  |  | $ | 1,143 |  |  | $ | 112 |  |  |  | 9.8 | %
|  | Year Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except per unit data) |
Reported: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 300,095 |  |  | $ | 272,443 |  |  | $ | 27,652 |  |  |  | 10.1 | %
Gross profit per retail unit (excludes fleet) |  | $ | 1,220 |  |  | $ | 1,138 |  |  | $ | 82 |  |  |  | 7.2 | %
|  | Fourth Quarter Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except per unit data) |
Same Store: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 75,745 |  |  | $ | 66,476 |  |  | $ | 9,269 |  |  |  | 13.9 | %
Gross profit per retail unit (excludes fleet) |  | $ | 1,259 |  |  | $ | 1,145 |  |  | $ | 114 |  |  |  | 10.0 | %
|  | Year Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands, except per unit data) |
Same Store: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 289,833 |  |  | $ | 263,038 |  |  | $ | 26,795 |  |  |  | 10.2 | %
Gross profit per retail unit (excludes fleet) |  | $ | 1,225 |  |  | $ | 1,142 |  |  | $ | 83 |  |  |  | 7.3 | %

Sonic Automotive, Inc.

Results of Operations (Unaudited)

Selling, General and Administrative (“SG&A”) Expenses

|  | Fourth Quarter Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands) |
Reported: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation |  | $ | 155,382 |  |  | $ | 151,704 |  |  | $ | (3,678 | ) |  |  | (2.4 | %)
Advertising |  |  | 15,409 |  |  |  | 15,327 |  |  |  | (82 | ) |  |  | (0.5 | %)
Rent |  |  | 18,384 |  |  |  | 17,632 |  |  |  | (752 | ) |  |  | (4.3 | %)
Other |  |  | 75,227 |  |  |  | 69,984 |  |  |  | (5,243 | ) |  |  | (7.5 | %)
Total |  | $ | 264,402 |  |  | $ | 254,647 |  |  | $ | (9,755 | ) |  |  | (3.8 | %)
SG&A expenses as a % of gross profit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation |  |  | 44.6 | % |  |  | 44.8 | % |  |  | 20 | bps |  |  |  |
Advertising |  |  | 4.4 | % |  |  | 4.5 | % |  |  | 10 | bps |  |  |  |
Rent |  |  | 5.3 | % |  |  | 5.2 | % |  |  | (10 | ) bps |  |  |  |
Other |  |  | 21.6 | % |  |  | 20.7 | % |  |  | (90 | ) bps |  |  |  |
Total |  |  | 75.9 | % |  |  | 75.2 | % |  |  | (70 | ) bps |  |  |  |
|  | Year Ended December 31, |  |  | Better / (Worse) |
|  | 2014 |  |  | 2013 |  |  | Change |  |  | % Change |
|  | (In thousands) |
Reported: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation |  | $ | 638,875 |  |  | $ | 601,495 |  |  | $ | (37,380 | ) |  |  | (6.2 | %)
Advertising |  |  | 57,437 |  |  |  | 56,609 |  |  |  | (828 | ) |  |  | (1.5 | %)
Rent |  |  | 73,707 |  |  |  | 73,976 |  |  |  | 269 |  |  |  | 0.4 | %
Other |  |  | 297,414 |  |  |  | 271,045 |  |  |  | (26,369 | ) |  |  | (9.7 | %)
Total |  | $ | 1,067,433 |  |  | $ | 1,003,125 |  |  | $ | (64,308 | ) |  |  | (6.4 | %)
SG&A expenses as a % of gross profit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation |  |  | 46.8 | % |  |  | 46.2 | % |  |  | (60 | ) bps |  |  |  |
Advertising |  |  | 4.2 | % |  |  | 4.3 | % |  |  | 10 | bps |  |  |  |
Rent |  |  | 5.4 | % |  |  | 5.7 | % |  |  | 30 | bps |  |  |  |
Other |  |  | 21.7 | % |  |  | 20.9 | % |  |  | (80 | ) bps |  |  |  |
Total |  |  | 78.1 | % |  |  | 77.1 | % |  |  | (100 | ) bps |  |  |  |