SONIC AUTOMOTIVE INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - February 28, 2012

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Sonic Automotive, Inc.
1
1
Q4 Earnings Review
February 28, 2012
Q4 Earnings Review
February 28, 2012
Exhibit 99.2

Sonic Automotive, Inc.
2
2
Forward-Looking Statements
Forward-Looking Statements
This
presentation
contains
“forward-looking
statements”
within
the meaning of the Private
Securities Litigation Reform Act of 1995.  These statements relate to future events, are not historical
facts and are based on our current expectations and assumptions regarding our business, the
economy and other future conditions.  These statements can generally be identified by lead-in
words
such
as
“believe”,
“expect”,
“anticipate”,
“intend”,
“plan”,
“foresee”,
“may”
,”will”
and other
similar words.  Statements that describe our Company’s objectives, plans or goals are also forward-
looking statements.  Examples of such forward-looking information we may be discussing in this
presentation
include,
without
limitation,
further
implementation
of our operational strategies and
playbooks, future debt retirement, capital expenditures, operating margins and revenues, inventory
levels and new vehicle industry sales volume. 
You are cautioned that these forward-looking statements are not guarantees of future performance,
involve risks and uncertainties and actual results may differ materially from those projected in the
forward-looking statements as a result of various factors.  These risks and uncertainties include,
among other things, (a) economic conditions in the markets in which we operate, (b) the success of
our operational strategies, (c) our relationships with the automobile manufacturers and (d) new and
pre-owned vehicle sales volume. These risks and uncertainties, as well as additional factors that
could affect our forward-looking statements, are described in our Form 10-K for the year ending
December 31, 2010 and our Form 10-Q for period ended September 30, 2011.
These forward-looking statements, risks, uncertainties and additional factors speak only as of the
date
of
this
presentation.
We
undertake
no
obligation
to
update
any such statements.

Sonic Automotive, Inc.
3
3
Sonic Automotive Q4 2011
Sonic Automotive Q4 2011
o
Quarter in Review
o
Financial Results
o
Operations Recap
o
Summary and Outlook
o
Quarter in Review
o
Financial Results
o
Operations Recap
o
Summary and Outlook

Sonic Automotive, Inc.
4
4
Overall Results
Overall Results
Strong
revenue
growth
–
up
12%
New
vehicle
revenue
up
15%
-
volume
up
12%
-
exceeds
industry growth
Pre-owned revenue up 12%
F&I revenue up 19%
Fixed Operations revenue up 2%
Adjusted SG&A to gross declined to 76.6% (1)
Adjusted income from continuing operations up $8M or 46% (1)
Adjusted Q4 2011 diluted EPS from continuing operations was
$0.43 per share vs $0.30 in prior year period (1)
Strong
revenue
growth
–
up
12%
New
vehicle
revenue
up
15%
-
volume
up
12%
-
exceeds
industry growth
Pre-owned revenue up 12%
F&I revenue up 19%
Fixed Operations revenue up 2%
Adjusted SG&A to gross declined to 76.6% (1)
Adjusted income from continuing operations up $8M or 46% (1)
Adjusted Q4 2011 diluted EPS from continuing operations was
$0.43 per share vs $0.30 in prior year period (1)
(1) –
See appendix for reconciliation to GAAP amounts
.
(1) –
See appendix for reconciliation to GAAP amounts
.

Sonic Automotive, Inc.
Adjusted Q4 and Full Year Results
(1)
Adjusted Q4 and Full Year Results
(1)
B/(W) than Q4
2010
B/(W) than FY
2010
(amounts in millions, except per share data)
Q4
2011
$
%
2011
$
%
Revenue
$ 2,071
$ 226
12%
$ 7,871
$ 990
14%
Gross Profit
$ 305
$ 21
7%
$ 1,209
$ 94
9%
Operating Profit (1)
$ 61
$ 10
19%
$ 223
$ 39
21%
Continuing Ops:
Profit (after tax) (1)
$ 25
$ 8
46%
$ 83
$ 26
45%
Diluted EPS (1)
$ 0.43
$ 0.13
43%
$ 1.39
$ 0.40
40%
5
5
`
(1) –
See appendix for reconciliation to GAAP amounts.

Sonic Automotive, Inc.
SG&A to Gross (1)
SG&A to Gross (1)
220 bps improvement in both periods
Q4 2010
Q4 2011
FY 2010
FY 2011
(1) –
See appendix for reconciliation to GAAP amounts.

Sonic Automotive, Inc.
Capital Spending
Capital Spending
7
7
(amounts in millions)
YTD Q4 2011
Estimated 
2012
Real Estate Acquisitions
$ 91.4
$ 14.5
All Other Cap Ex
67.3
118.9
Subtotal
$ 158.7
$ 133.4
Less: Mortgage Funding
(54.4)
(33.5)
Total Cash Used –
Cap Ex
$ 104.3
$ 99.9

Sonic Automotive, Inc.
8
8
Debt Covenants
Debt Covenants
Covenant
Actual Q4
2011
Memo:
March 2012
Covenant
Liquidity Ratio
>= 1.05
1.13
>= 1.10
Fixed Charge Coverage Ratio
>= 1.15
1.65
>= 1.20
Total Lease Adjusted Leverage
Ratio
<= 5.50
4.02
<= 5.50
Compliant with all Covenants

Sonic Automotive, Inc.
New Vehicles
New Vehicles
Q4 2011
Q4 2010
B/(W)
Retail Volume
30,928
27,011
14.5%
Total Volume (including fleet)
32,868
29,300
12.2%
Selling Price
$ 36,074
$ 35,297
2.2%
Gross Margin %
6.1%
6.3%
(20 bps)
GPU
$ 2,189
$ 2,225
($ 35)
Gross Profit
$ 72 million
$ 65 million
10.4%
9
9

Sonic Automotive, Inc.
Pre-Owned Retail Vehicles
Pre-Owned Retail Vehicles
Q4 2011
Q4 2010
B/(W)
Retail Volume
23,880
21,429
11.4%
Pre-Owned Related Gross*
$
73 million
$
66 million
$
7 million
Pre-Owned to New Ratio
.77 to 1
.79 to 1
10
10
* -
Includes: pre-owned gross + pre-owned reconditioning gross + pre-owned F&I gross
11 Consecutive
Quarters of
Double-Digit
Volume Growth

Sonic Automotive, Inc.
Pre-Owned Retail Vehicle Units
Pre-Owned Retail Vehicle Units
11
-Average Sold / Month / Store
Compounded Annual Growth Rate (CAGR):
Since
2008
–
15.2%
Since
2006
–
11.0%

Sonic Automotive, Inc.
Fixed Operations
Fixed Operations
Revenue
Gross Profit
12
12
Customer Pay
gross up 4%
Overall gross profit
up 2% despite
lower
warranty
activity

Sonic Automotive, Inc.
Fixed Operations Revenue
Fixed Operations Revenue
13
(Amounts in millions)
•
Revenue grew $34 million on average each year over the last five years
•
Revenue growth in four of the last five years

Sonic Automotive, Inc.
14
Summary
Summary
Automotive retail industry continues its recovery
SAAR rose steadily throughout 2011
Base business continues to grow
New vehicle market share continues to increase
Pre-Owned retail vehicle volume continues to grow at
double-digit rate
F&I and fixed operations are benefiting from higher
levels of retail activity
Investment in technology will continue
Automotive retail industry continues its recovery
SAAR rose steadily throughout 2011
Base business continues to grow
New vehicle market share continues to increase
Pre-Owned retail vehicle volume continues to grow at
double-digit rate
F&I and fixed operations are benefiting from higher
levels of retail activity
Investment in technology will continue

Sonic Automotive, Inc.
2012 Outlook
2012 Outlook
•
Expect New Vehicle SAAR of 13.5 Million
•
Pre-Owned Vehicle Growth in High Single Digits
•
Property Purchases to Continue
•
Expect SG&A to be Below 78%
•
Targeting 2012 Diluted EPS from Continuing
Operations of $1.55 -
$1.65
•
Expect New Vehicle SAAR of 13.5 Million
•
Pre-Owned Vehicle Growth in High Single Digits
•
Property Purchases to Continue
•
Expect SG&A to be Below 78%
•
Targeting 2012 Diluted EPS from Continuing
Operations of $1.55 -
$1.65
15
15

Sonic Automotive, Inc.
16
16

Sonic Automotive, Inc.
17
17
Reconciliation
of
Non-GAAP
Financial
Information
Three Months Ended December 31,
Adjusted 2011 B/(W)
2011
2010
than Adjusted 2010
($ in millions, shares in
thousands, except per share data)
As
Reported
Adjustments
As
Adjusted
As
Reported
Adjustments
As
Adjusted
$
%
Revenues
2,070.8
$     
-
$                        
2,070.8
$     
1,844.9
$     
-
$                        
1,844.9
$     
225.9
$     
12.2%
Gross profit
305.3
          
-
                          
305.3
          
284.5
          
-
                          
284.5
          
20.8
         
7.3%
Gross margin
14.7%
14.7%
15.4%
15.4%
(70) bps
SG&A
(240.8)
         
6.8
                      
(234.0)
         
(224.2)
         
-
                          
(224.2)
         
(9.8)
         
4.4%
SG&A as % of gross profit
78.9%
76.6%
78.8%
78.8%
220
bps
Impairment charges
(1.0)
              
1.0
                      
-
                   
(0.1)
              
0.1
                      
-
                   
-
               
-
Depreciation and amortization
(10.6)
           
-
                          
(10.6)
           
(9.3)
              
-
                          
(9.3)
              
(1.3)
         
14.0%
Operating income
52.9
            
7.8
                      
60.7
            
50.9
            
0.1
                      
51.0
            
9.7
           
19.0%
Operating margin
2.6%
2.9%
2.8%
2.8%
(10) bps
Interest expense, floor plan
(4.9)
              
-
                          
(4.9)
              
(5.9)
              
-
                          
(5.9)
              
1.0
           
(16.9%)
Interest expense, other, net
(14.7)
           
-
                          
(14.7)
           
(15.3)
           
-
                          
(15.3)
           
0.6
           
(3.9%)
Interest expense, non-cash
(1.7)
              
-
                          
(1.7)
              
(1.2)
              
(0.5)
                     
(1.7)
              
-
               
-
Other income (expense), net
(0.3)
              
-
                          
(0.3)
              
-
                   
-
                          
-
                   
(0.3)
         
-
Income (loss) from continuing operations
20.4
            
5.0
                      
(1)
25.4
            
65.8
            
(48.4)
                   
(2)
17.4
            
8.0
           
46.0%
Income (loss) from discontinued operations
0.1
               
0.4
                      
(1)
0.5
               
(1.4)
              
0.5
                      
(2)
(0.9)
              
1.4
           
(155.6%)
Net income (loss)
20.5
$          
5.4
$                    
25.9
$          
64.4
$          
(47.9)
$                 
16.5
$          
9.4
$         
57.0%
Diluted earnings (loss) per common share:
Earnings (loss) per share
   from continuing operations
0.35
$          
0.08
$                  
0.43
$          
1.02
$          
(0.72)
$                 
0.30
$          
0.13
$       
43.3%
Earnings (loss) per share from
   discontinued operations
-
               
-
                      
-
               
(0.02)
           
-
                      
(0.02)
           
0.02
         
(100.0%)
Earnings (loss) per common share
0.35
$          
0.08
$                  
0.43
$          
1.00
$          
(0.72)
$                 
0.28
$          
0.15
$       
53.6%
Weighted average shares outstanding
64,467
        
64,467
        
66,042
        
66,042
        
(1) Represents tax-effected amounts related to lease exit adjustments, legal settlement charges, and property impairment charges.
(2) Represents tax-effected amounts related to lease exit adjustments, property impairment charges, interest rate swaps and tax items.

Sonic Automotive, Inc.
18
18
Reconciliation
of
Non-GAAP
Financial
Information
Year Ended December 31,
Adjusted 2011 B/(W)
2011
2010
than Adjusted 2010
($ in millions, shares in
thousands, except per share data)
As
Reported
Adjustments
As
Adjusted
As
Reported
Adjustments
As
Adjusted
$
%
Revenues
7,871.3
$     
-
$                        
7,871.3
$     
6,880.8
$     
-
$                        
6,880.8
$     
990.5
$     
14.4%
Gross profit
1,209.1
       
-
                          
1,209.1
       
1,114.7
       
-
                          
1,114.7
       
94.4
         
8.5%
Gross margin
15.4%
15.4%
16.2%
16.2%
(80) bps
SG&A
(952.4)
         
6.8
                      
(945.6)
         
(896.7)
         
0.7
                      
(896.0)
         
(49.6)
       
5.5%
SG&A as % of gross profit
78.8%
78.2%
80.4%
80.4%
220
bps
Impairment charges
(1.2)
              
1.2
                      
-
                   
(0.2)
              
0.2
                      
-
                   
-
               
-
Depreciation and amortization
(40.7)
           
-
                          
(40.7)
           
(35.2)
           
-
                          
(35.2)
           
(5.5)
         
15.6%
Operating income
214.8
          
8.0
                      
222.8
          
182.6
          
0.9
                      
183.5
          
39.3
         
21.4%
Operating margin
2.7%
2.8%
2.7%
2.7%
(10) bps
Interest expense, floor plan
(19.6)
           
-
                          
(19.6)
           
(21.5)
           
-
                          
(21.5)
           
1.9
           
(8.8%)
Interest expense, other, net
(60.7)
           
-
                          
(60.7)
           
(63.3)
           
1.5
                      
(61.8)
           
1.1
           
(1.8%)
Interest expense, non-cash
(7.5)
              
-
                          
(7.5)
              
(11.8)
           
4.9
                      
(6.9)
              
(0.6)
         
8.7%
Other income (expense), net
(1.0)
              
-
                          
(1.0)
              
(7.5)
              
7.7
                      
0.2
               
(1.2)
         
(600.0%)
Income (loss) from continuing operations
77.6
            
5.0
                      
(1)
82.6
            
95.9
            
(39.1)
                   
(2)
56.8
            
25.8
         
45.4%
Income (loss) from discontinued operations
(1.3)
              
(0.5)
                     
(1)
(1.8)
              
(6.0)
              
0.7
                      
(2)
(5.3)
              
3.5
           
(66.0%)
Net income (loss)
76.3
$          
4.5
$                    
80.8
$          
89.9
$          
(38.4)
$                 
51.5
$          
29.3
$       
56.9%
Diluted earnings (loss) per common share:
Earnings (loss) per share
   from continuing operations
1.31
$          
0.08
$                  
1.39
$          
1.58
$          
(0.59)
$                 
0.99
$          
0.40
$       
40.4%
Earnings (loss) per share from
   discontinued operations
(0.02)
           
(0.01)
                   
(0.03)
           
(0.09)
           
0.01
                    
(0.08)
           
0.05
         
(62.5%)
Earnings (loss) per common share
1.29
$          
0.07
$                  
1.36
$          
1.49
$          
(0.58)
$                 
0.91
$          
0.45
$       
49.5%
Weighted average shares outstanding
65,464
        
65,464
        
65,794
        
65,794
        
(1) Represents tax-effected amounts related to lease exit adjustments, legal settlement charges, and property impairment charges.
(2) Represents tax-effected amounts related to hail damage, lease exit adjustments, property impairment charges, interest rate swaps, debt restructuring and tax items.

Sonic Automotive, Inc.
19
19
Reconciliation
of
Non-GAAP
Financial
Information
Three Months Ended December 31, 2011
Continuing Operations
Discontinued Operations
Total Operations
($ in millions, shares in
thousands, except per share data)
Net Income
(Loss):
Numerator
Share
Count:
Denominator
Diluted
EPS
Net Income
(Loss):
Numerator
Share
Count:
Denominator
Diluted
EPS
Net Income
(Loss):
Numerator
Share
Count:
Denominator
Diluted
EPS
Reported basic
20.4
$               
52,194
                 
0.1
$                 
52,194
                 
20.5
$               
52,194
                 
Effect of dilutive securities:
Two class method
(0.3)
                  
-
                           
-
                     
-
                           
(0.3)
                  
-
                           
Contingently convertible debt
2.3
                   
11,713
                 
-
                     
11,713
                 
2.3
                   
11,713
                 
Stock compensation plans
-
                     
560
                      
-
                     
560
                      
-
                     
560
                      
Reported diluted
22.4
                 
64,467
                 
0.35
$      
0.1
                   
64,467
                 
-
$       
22.5
                 
64,467
                 
0.35
$      
Adjustments (tax-effected):
Lease exit adjustments
   and legal settlement charges
4.4
                   
-
                           
0.3
                   
-
                           
4.7
                   
-
                           
Property impairment charges
0.6
                   
-
                           
-
                     
-
                           
0.6
                   
-
                           
Subtotal
27.4
                 
64,467
                 
0.43
$      
0.4
                   
64,467
                 
-
$       
27.8
                 
64,467
                 
0.43
$      
Effect of dilutive securities:
Two class method
-
                     
-
                           
-
                     
-
                           
-
                     
-
                           
Adjusted diluted
27.4
$               
64,467
                 
0.43
$      
0.4
$                 
64,467
                 
-
$       
27.8
$               
64,467
                 
0.43
$      

Sonic Automotive, Inc.
20
20
Reconciliation
of
Non-GAAP
Financial
Information
Three Months Ended December 31, 2010
Continuing Operations
Discontinued Operations
Total Operations
($ in millions, shares in
thousands, except per share data)
Net Income
(Loss):
Numerator
Share
Count:
Denominator
Diluted
EPS
Net Income
(Loss):
Numerator
Share
Count:
Denominator
Diluted
EPS
Net Income
(Loss):
Numerator
Share
Count:
Denominator
Diluted
EPS
Reported basic
65.8
$               
52,401
                 
(1.4)
$                
52,401
                 
64.4
$               
52,401
                 
Effect of dilutive securities:
Two class method
(0.6)
                  
-
                           
-
                     
-
                           
(0.6)
                  
-
                           
Contingently convertible debt
2.3
                   
12,890
                 
-
                     
12,890
                 
2.3
                   
12,890
                 
Stock compensation plans
-
                     
751
                      
-
                     
751
                      
-
                     
751
                      
Reported diluted
67.5
                 
66,042
                 
1.02
$      
(1.4)
                  
66,042
                 
(0.02)
$    
66.1
                 
66,042
                 
1.00
$      
Adjustments (tax-effected):
Property impairment charges
0.1
                   
-
                           
-
                     
-
                           
0.1
                   
-
                           
Interest rate swaps
(0.3)
                  
-
                           
-
                     
-
                           
(0.3)
                  
-
                           
Lease exit adjustments
-
                     
-
                           
0.6
                   
-
                           
0.6
                   
-
                           
Tax items
(48.2)
                
-
                           
-
                     
-
                           
(48.2)
                
-
                           
Subtotal
19.1
                 
66,042
                 
0.29
$      
(0.8)
                  
66,042
                 
(0.01)
$    
18.3
                 
66,042
                 
0.28
$      
Effect of dilutive securities:
Two class method
0.5
                   
-
                           
(0.5)
                  
-
                           
-
                     
-
                           
Adjusted diluted
19.6
$               
66,042
                 
0.30
$      
(1.3)
$                
66,042
                 
(0.02)
$    
18.3
$               
66,042
                 
0.28
$      

Sonic Automotive, Inc.
21
21
Reconciliation
of
Non-GAAP
Financial
Information
Year Ended December 31, 2011
Continuing Operations
Discontinued Operations
Total Operations
($ in millions, shares in
thousands, except per share data)
Net Income
(Loss):
Numerator
Share
Count:
Denominator
Diluted
EPS
Net Income
(Loss):
Numerator
Share
Count:
Denominator
Diluted
EPS
Net Income
(Loss):
Numerator
Share
Count:
Denominator
Diluted
EPS
Reported basic
77.6
$               
52,358
                 
(1.3)
$                
52,358
                 
76.3
$               
52,358
                 
Effect of dilutive securities:
Two class method
(0.9)
                  
-
                           
-
                     
-
                           
(0.9)
                  
-
                           
Contingently convertible debt
9.3
                   
12,517
                 
-
                     
12,517
                 
9.3
                   
12,517
                 
Stock compensation plans
-
                     
589
                      
-
                     
589
                      
-
                     
589
                      
Reported diluted
86.0
                 
65,464
                 
1.31
$      
(1.3)
                  
65,464
                 
(0.02)
$    
84.7
                 
65,464
                 
1.29
$      
Adjustments (tax-effected):
Lease exit adjustments
   and legal settlement charges
4.2
                   
-
                           
(0.4)
                  
-
                           
3.8
                   
-
                           
Property impairment charges
0.7
                   
-
                           
-
                     
-
                           
0.7
                   
-
                           
Subtotal
90.9
                 
65,464
                 
1.39
$      
(1.7)
                  
65,464
                 
(0.03)
$    
89.2
                 
65,464
                 
1.36
$      
Effect of dilutive securities:
Two class method
(0.1)
                  
-
                           
-
                     
-
                           
(0.1)
                  
-
                           
Adjusted diluted
90.8
$               
65,464
                 
1.39
$      
(1.7)
$                
65,464
                 
(0.03)
$    
89.1
$               
65,464
                 
1.36
$      

Sonic Automotive, Inc.
22
22
Reconciliation of Non-GAAP Financial Information
Year Ended December 31, 2010
Continuing Operations
Discontinued Operations
Total Operations
($ in millions, shares in
thousands, except per share data)
Net Income
(Loss):
Numerator
Share
Count:
Denominator
Diluted
EPS
Net Income
(Loss):
Numerator
Share
Count:
Denominator
Diluted
EPS
Net Income
(Loss):
Numerator
Share
Count:
Denominator
Diluted
EPS
Reported basic
95.9
$               
52,214
                 
(6.0)
$                
52,214
                 
89.9
$               
52,214
                 
Effect of dilutive securities:
Two class method
(0.9)
                  
-
                           
-
                     
-
                           
(0.9)
                  
-
                           
Contingently convertible debt
9.0
                   
12,890
                 
0.1
                   
12,890
                 
9.1
                   
12,890
                 
Stock compensation plans
-
                     
690
                      
-
                     
690
                      
-
                     
690
                      
Reported diluted
104.0
               
65,794
                 
1.58
$      
(5.9)
                  
65,794
                 
(0.09)
$    
98.1
                 
65,794
                 
1.49
$      
Adjustments (tax-effected):
Hail damage
0.4
                   
-
                           
-
                     
-
                           
0.4
                   
-
                           
Property impairment charges
0.2
                   
-
                           
-
                     
-
                           
0.2
                   
-
                           
Interest rate swaps
3.0
                   
-
                           
-
                     
-
                           
3.0
                   
-
                           
Debt restructuring
5.6
                   
-
                           
-
                     
-
                           
5.6
                   
-
                           
Lease exit adjustments
-
                     
-
                           
0.6
                   
-
                           
0.6
                   
-
                           
Tax items
(48.2)
                
-
                           
-
                     
-
                           
(48.2)
                
-
                           
Subtotal
65.0
                 
65,794
                 
0.99
$      
(5.3)
                  
65,794
                 
(0.08)
$    
59.7
                 
65,794
                 
0.91
$      
Effect of dilutive securities:
Two class method
0.3
                   
-
                           
-
                     
-
                           
0.3
                   
-
                           
Adjusted diluted
65.3
$               
65,794
                 
0.99
$      
(5.3)
$                
65,794
                 
(0.08)
$    
60.0
$               
65,794
                 
0.91
$      

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SONIC AUTOMOTIVE INC Reports