Sonic Automotive Inc (SAH) SEC Filing 10-K Annual report for the fiscal year ending Sunday, December 31, 2017

Exhibit 99.1

FOR IMMEDIATE RELEASE

Sonic Automotive, Inc. Reports Fourth Quarter Results

All-Time Record Revenue and Gross Profit – Increases Dividend

CHARLOTTE, N.C. – February 27, 2018 – Sonic Automotive, Inc. (NYSE: SAH), one of the nation’s largest automotive retailers, today reported financial results for the fourth quarter and the full year of 2017.

Fourth Quarter and Full Year 2017 Results

GAAP Basis

Net income from continuing operations for the fourth quarter of 2017 was $62.1 million, or $1.42 per diluted share.  These results include a benefit of approximately $28.4 million related to the change in the federal income tax rate from 35% to 21% in future periods and other items discussed below.  Comparatively, net income from continuing operations for the fourth quarter of 2016 was $38.0 million, or $0.84 per diluted share.

Net income from continuing operations for the full year of 2017 was $94.2 million, or $2.12 per diluted share.  The full year results for 2017 also include the benefit related to the federal income tax rate change.  Comparatively, net income from continuing operations for the full year of 2016 was $94.5 million, or $2.06 per diluted share.

Adjusted Basis

Adjusted net income from continuing operations and related earnings per diluted share are non-GAAP financial measures.  The schedules included in this press release reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures.

Adjusted net income from continuing operations for the fourth quarter of 2017 was $36.6 million, or $0.84 per diluted share.  The adjustments in the 2017 quarterly period relate to the benefit of the change in the federal income tax rate in future periods, a gain related to the disposal of franchises, adjustments to physical damage accruals and charges related to fixed asset and franchise asset impairments and legal matters. Adjusted net income from continuing operations for the fourth quarter of 2016 was $29.8 million, or $0.66 per diluted share.  The adjustments in the 2016 quarterly period relate to gains for a settlement with an original equipment manufacturer (“OEM”) and the adjustment of physical damage loss accruals, offset partially by losses related to fixed asset impairments and lease exit charges.