Sonic Automotive, Inc. Reports Quarterly Continuing Operations Earnings per Share of $0.50

CHARLOTTE, N.C., July 26, 2016

Second Quarter 2016 Highlights

• Q2 2016 same store fixed operations revenues up 3.0% over prior year quarter
• Q2 2016 same store finance and insurance revenues and gross profit up 2.9% over prior year quarter
• Q2 2016 continuing operations SG&A to gross improves 160 basis points to 78.5% compared to prior year quarter of 80.1%
• Q2 2016 continuing operations SG&A to gross improves 70 basis points to 78.5% compared to an adjusted prior year quarter of 79.2%
• Two additional Denver market EchoPark^® stores opened in late June
• Q2 2016 EchoPark^® stores retail 1,136 units, up 255 units, or 28.9%, from the prior year quarter

Sonic Automotive, Inc. (NYSE: SAH), one of the nation's largest automotive retailers, today reported net income from continuing operations for the second quarter of 2016 of $23.0 million, or $0.50 per diluted share. Included in these amounts are a pre-tax loss of $3.4 million, or $0.04 per diluted share, related to EchoPark^® operations.

Net income from continuing operations and related diluted earnings per share for the second quarter of 2015 were $15.1 million and $0.30 per share, respectively. On an adjusted basis, net income from continuing operations for the second quarter of 2015 was $23.4 million, or $0.46 per diluted share.  Included in these adjusted amounts is a pre-tax loss of $4.1 million, or $0.05 per diluted share, related to EchoPark^® operations. See the accompanying tables for a reconciliation of the adjusted balances to GAAP basis amounts and further details of the quarterly adjustments.

B. Scott Smith, Sonic's President, noted, "The automotive retail environment continues to demonstrate strength and sustainability. Historic low interest rates and a fantastic product offering by manufacturers have supported customer demand for new and pre-owned vehicles. During the quarter, our team delivered an outstanding sales and service experience to our customers and leveraged our operating costs in delivering strong operating results. In addition, we were actively repurchasing outstanding shares. During the second quarter, we repurchased 759,056 shares of our Class A common stock for approximately $13.1 million. During the first half of 2016, we repurchased almost 10% of our shares outstanding as of the end of 2015."

"We are providing more detailed earnings guidance for the second half of the year as the third and fourth quarters' operating environments vary from year to year.  Accordingly, we currently estimate diluted earnings per share from continuing operations for the third and fourth quarters will range between $0.52 - $0.54 and $0.66 - $0.69, respectively."

Jeff Dyke, Sonic's EVP of Operations, stated, "The industry was solid again this quarter and our performance reflected that. Our Sonic Automotive franchise store business continues to be supported by our team's ability to execute our playbook processes as we work to perfect the One Sonic-One Experience culture in our stores. Our guests' responses to our new process, technology and culture have been excellent as reflected in our customer satisfaction scores and the reviews we receive via Google, Yelp, etc. While we saw a decline in the new car retail SAAR in the quarter, new car margins have stabilized and heavy new car inventories from the first quarter are coming back in line with historical levels. We have worked with our manufacturer partners to develop action plans to address recall and stop-sale issues across several brands and are executing those plans. We are pleased that we will be opening several new add points this year including Mercedes Benz in McKinney, Texas (outside of Dallas), Audi in Pensacola, Florida and Nissan in Cleveland, Tennessee (outside of Chattanooga). These additional points reflect the strength of our organization and relationship with our manufacturer partners. We look forward to announcing several more add points in the coming quarters."