Sonic Automotive Second Quarter 2011 Earnings of $0.37 with Double Digit Revenue Growth

CHARLOTTE, NC-- July 26, 2011: Sonic Automotive, Inc. , one of the nation's largest automotive retailers, today reported that 2011 second quarter earnings from continuing operations were $0.37 per diluted share compared to $0.18 per diluted share in the prior year quarter. The prior year period included pretax charges of $7.3 million, or $0.06 per diluted share, related to various debt refinancing transactions completed during the second quarter of 2010.

Second Quarter 2011 Highlights

Continuing operations net profit up $13 million or 131%.
Total revenues up 14% over prior year quarter.
New vehicle revenue up 16%; Non-luxury import volume up 14%.
9th consecutive quarter of year-over-year double digit used vehicle revenue growth.
Parts and Service revenue up 6%.

Business Overview

Focus on base business driving unit volume and profit growth.
Strong performance despite lower Japanese brand inventory.
SG&A metrics continue strong improvement trend at 77.6% of gross profit.

Company Strategy

Organic growth through focus on the base business.
Converting leased properties to owned properties.
Opportunistically reduce debt.

Commenting on the second quarter results, Jeff Dyke, the Company’s EVP of Operations, stated, “The higher margin segments of our business continue to benefit as our new and used vehicle business continues to gain market share. The Company’s new vehicle revenue was up 16% over the same period last year. Used vehicle revenue was up 15%. Ā Parts and service revenue was up 6% compared to the second quarter of last year. We look forward to introducing more advanced stages of some of our core operating playbooks in the near future to further capitalize on the work we've done to roll out Predictable, Repeatable and Sustainable processes to our dealerships."

Commenting on the business, B. Scott Smith, the Company’s President, said, "Our focus on creating Predictable, Repeatable and Sustainable processes is proving to be a sound model. Ā Growing our base business continues to produce strong results. Our new and used volume both grew by double digits despite the challenge of lower Japanese brand inventory levels. We are seeing the benefit of our operating playbooks in every area of our business as we continue to outperform the industry. Ā We will continue to focus on organic growth in our base business, converting leased properties to owned properties and opportunistically reducing our debt.

"We expect growth in the automotive retailing sector to continue over the second half of the year and we remain comfortable with our full year continuing operations earnings target of $1.18 - $1.28 per share."

Presentation materials for the Company’s July 26, 2011 earnings conference call at 11:00 A.M. (Eastern) can be accessed on the Company’s website at Sonic Automotive by clicking on the “Investor Relations” tab under “Our Company” and choosing “Webcasts & Presentations”.

A live audio of the call will be accessible to the public by calling (877) 791-3416. International callers dial (706) 643-0958. Callers should dial in approximately 10 minutes before the call begins.

A conference call replay will be available one hour following the call for seven days and can be accessed by calling: 800-642-1687, International callers dial (706) 645-9291, Conference ID: 80358348.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, N.C., is one of the nation’s largest automotive retailers.