Sonic Automotive, Inc. Authorizes Additional
Stock Repurchases of $25 Million
CHARLOTTE, N.C., May 14 Sonic Automotive, Inc.
today announced that its Board of Directors has authorized the Company to
expend up to an additional $25,000,000 to repurchase outstanding shares of its
Class A common stock or redeem securities convertible into Class A common
stock. Combined with previous authorizations in November 1999, February 2000
and December 2000, the Board has now authorized the Company to expend up to a
total of $100,000,000 for stock repurchases. To date, the Company has spent
approximately $62.8 million in repurchasing shares of Company stock. Shares
of the Company's common stock will be purchased from time to time in the open
market subject to market conditions.
"Our Board of Directors continues to believe Sonic Automotive, Inc. is
undervalued by the market. The Company will continue its practice of using
stock buybacks as part of its strategy to maximize returns to shareholders and
improve earnings per share," stated B. Scott Smith, the Company's President
and Chief Operating Officer.
Mr. Scott Smith also stated, "Ultimately, the capital markets will better
understand the auto retailing business model and our Company's growth
strategy. We believe Sonic is a specialty retailer with attractive long-term
growth opportunities."
About Sonic Automotive, Inc.
Sonic Automotive, Inc., a Fortune 300 Company and member of the Russell
2000 Index, is the second largest automotive retailer in the United States
operating 165 franchises and 30 collision repair centers. Sonic can be
reached on the Web at http://www.sonicautomotive.com.
Included herein are forward-looking statements, including statements with
respect to anticipated profit and earnings per share growth. Many factors
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, risks associated with
acquisitions and the risk factors described in Exhibit 99.1 to the Company's
Annual Report on Form 10-K for the year ending December 31, 2000. The Company
does not undertake any obligation to update forward-looking information.
Contact: Theo Wright, Chief Financial Officer of Sonic Automotive, Inc.
(704) 532-3347.
J. Todd Atenhan, Investor Relations of Sonic Automotive, Inc.
(888) 766-4218.
Bill Steers, Edelman Public Relations Worldwide, (404) 739-0220.
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X37834580