CHARLOTTE, N.C., Feb. 11 /PRNewswire-FirstCall/ -- Sonic Automotive, Inc.
(NYSE: SAH), a leader in automotive retailing, today announced that its Board
of Directors has decided to suspend the Company's quarterly dividend.
Previously, the Company paid a quarterly dividend of $0.12 per share.
In addition, the Company has retained Moelis & Company as financial
advisor to assist the Company in evaluating alternatives to enhance liquidity
and to address the Company's 2009 and 2010 debt maturities.
Commenting on the announcement, Scott Smith, the Company's President,
said, "While this is the most challenging business environment in recent
years, Sonic has responded by reducing costs and managing liquidity for our
ongoing operational needs. In addition, we remain in compliance with the
financial covenants under our revolving credit facility. However, given the
continued upheaval in the credit markets and our upcoming debt maturities in
2009 and 2010, we believe the suspension of the dividend and the engagement
of Moelis & Company represent a prudent course of action as we evaluate the
alternatives available to the Company to address our debt maturities."
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is
one of the largest automotive retailers in the United States operating 164
franchises. Sonic can be reached on the Web at www.sonicautomotive.com.
Included herein are forward-looking statements, including our evaluation
of debt maturities. There are many factors that 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 the Company's quarterly report on Form 10-Q for the quarter ended
September 30, 2008. The Company does not undertake any obligation to update
forward-looking information.
