Sonic Doubles Earnings Per Share for Second Fiscal Quarter 2013

  Sonic Doubles Earnings Per Share for Second Fiscal Quarter 2013

Business Wire

OKLAHOMA CITY -- March 25, 2013

Sonic Corp. (NASDAQ: SONC), the nation's largest chain of drive-in
restaurants, today announced results for the second fiscal quarter ended
February 28, 2013.

Key highlights of the company's second quarter report included:

  *The company's net income per diluted share increased 100% to $0.06 in the
    second quarter of fiscal 2013 compared with net income per diluted share
    of $0.03 in the second quarter of fiscal 2012;
  *With one less day than prior year as a result of leap year, system-wide
    same-store sales were flat during the second quarter, with an increase of
    1.9% at company drive-ins; excluding the impact of the extra day in 2012,
    system-wide same-store sales increased 1.3% and company drive-in
    same-store sales increased 3.3%;
  *Company drive-in margins improved by 140 basis points; and
  *The company purchased over $6 million of stock representing approximately
    1% of its outstanding stock.

“Given more than a 1% negative impact from the loss of leap year day, we are
pleased with our system-wide same-store sales performance,” said Clifford
Hudson, Chairman and Chief Executive Officer. “We are especially pleased with
the growth in same-store sales at our company drive-ins which led to a 140
basis point improvement in drive-in margins. Our innovative product pipeline
and shift from local to national media expenditures are having a positive
impact across our core, developing and new markets.

“In the second quarter we repaid $23.7 million of debt and increased our
current share repurchase program by $15 million to $55 million. Since
authorization of the current program in August of 2012, we have repurchased
$25.6 million of stock representing approximately 4% of our outstanding
shares.” added Hudson. “As we have done in the recent past, we will utilize
the strength and flexibility of our business model to grow operating income
and use our free cash flow^1 to invest in our brand, opportunistically
repurchase stock and pay down debt.

“In addition, over the next one to three years, initiatives such as our new
point-of-sale system will complement our same-store sales initiatives to
increase sales and profits. This, combined with a new lower-cost, small
building prototype, will improve the return on investment of new drive-ins,
encouraging increased development in fiscal 2014 and subsequent years. Our
multi-layered growth strategy, comprised of same-store sales growth, operating
leverage, new unit growth and effective deployment of free cash flow, is
expected to drive double-digit earnings growth in the near and long term.”

Financial Overview

For the second fiscal quarter ended February 28, 2013, the company's net
income totaled $3.6 million or $0.06 per diluted share compared with net
income of $1.7 million or $0.03 per diluted share in the same period prior
year. Excluding a $0.9 million tax benefit that includes the retroactive
reinstatement of the Work Opportunity Tax Credit (WOTC) and resolution of
certain tax matters, as well as a $0.5 million ($0.3 million after-tax) charge
from the write-off of debt origination costs associated with the $20.0 million
early extinguishment of debt, net income per diluted share was $0.05 for the
second quarter of fiscal 2013.

The following non-GAAP adjustments are intended to supplement the presentation
of the company's financial results in accordance with GAAP. The company
believes that the presentation of these items provides useful information to
investors and management regarding the underlying business trends and the
performance of the company's ongoing operations and is helpful for
period-to-period and company-to-company comparisons, which management believes
will assist investors in analyzing the financial results of the company and
predicting future performance.

               Quarter Ended        Quarter Ended                                 
               February 28, 2013     February 29,
                                     2012
               Net       Diluted     Net     Diluted   Net Income            Diluted EPS
               Income    EPS         Income  EPS       $ Change  %        $ Change  %      
                                                                  Change                Change
               $ 3,577   $ 0.06      $ 1,677 $  0.03   $ 1,900    113    %   $ 0.03     100    %
Reported -
GAAP
                                                                                        
After-tax loss
from early                                                                              
extinguishment
of debt          315       0.01        -        -
                                                                                        
Retroactive
tax benefit of
WOTC and
resolution of    (857  )   (0.02 )     -        -
tax matters
                                                                               
Adjusted -     $ 3,035   $ 0.05      $ 1,677 $  0.03   $ 1,358    81     %   $ 0.02     67     %
Non-GAAP

Company drive-in sales in the second quarter of fiscal 2013 decreased by $3.5
million compared to the second quarter of fiscal 2012 primarily as a result of
the refranchising of 34 company drive-ins during the second fiscal quarter of
2012, partially offset by an increase in same-store sales.

For the first six months of fiscal 2013, net income totaled $9.7 million or
$0.17 per diluted share compared with net income of $7.2 million or $0.12 per
diluted share for the same period in 2012. Excluding the items outlined below,
net income and net income per diluted share increased 29% and 33%,
respectively.

               Six Months Ended     Six Months                                    
                                     Ended
               February 28, 2013     February 29,
                                     2012
               Net       Diluted     Net     Diluted   Net Income            Diluted EPS
               Income    EPS         Income  EPS       $ Change  %        $ Change  %      
                                                                  Change                Change
               $ 9,710   $ 0.17      $ 7,176 $  0.12   $ 2,534    35     %   $ 0.05     42     %
Reported -
GAAP
                                                                                        
After-tax loss
from early
extinguishment   315       0.01        -        -
of debt
                                                                                        
Retroactive
tax benefit of
WOTC and
resolution of    (743  )   (0.02 )     -        -
tax matters
                                                                               
Adjusted -     $ 9,282   $ 0.16      $ 7,176 $  0.12   $ 2,106    29     %   $ 0.04     33     %
Non-GAAP

Company drive-in sales for the first six months of fiscal 2013 decreased by
$6.8 million compared to the same period prior year primarily as a result of
the refranchising of 34 company drive-ins during the second fiscal quarter of
2012 partially offset by an increase in same-store sales.

Same-Store Sales

For the second quarter ended February 28, 2013, system-wide same-store sales
were flat, which was comprised of a 1.9% increase at company drive-ins and
essentially flat same-store sales at franchise drive-ins. System-wide
same-store sales were negatively impacted due to one less operating day in the
second quarter of fiscal 2013 as a result of leap day in last year’s results.
Excluding the extra day in 2012, system-wide same-store sales increased 1.3%
and company drive-in same-store sales increased 3.3%.

Development

Three new franchise drive-ins were opened in the second quarter of fiscal 2013
versus 10 new franchise drive-in openings during the second quarter of fiscal
2012.

Fiscal Year 2013 Outlook

The company expects its initiatives to drive sales improvements going forward.
However, uncertainty with regard to the macroeconomic environment and its
impact on consumer confidence may result in sales volatility. The outlook for
fiscal 2013 anticipates the following elements:

  *Positive same-store sales in the low single digit range;
  *Drive-in level margins to improve between 50 to 100 basis points;
  *Slightly more franchise drive-in openings than fiscal 2012;
  *Selling, general and administrative expenses of $17.5 to $18 million for
    each of the third and fourth quarters, respectively;
  *Depreciation and amortization of $10 to $10.5 million for each of the
    third and fourth quarters, respectively;
  *Net interest expense of approximately $28 to $28.5 million excluding the
    impact of the debt origination cost write-off from the $20 million early
    extinguishment of debt;
  *An income tax rate of between 37% and 38% for each of the third and fourth
    fiscal quarters, respectively;
  *Capital expenditures of $30 to $35 million which includes partial
    implementation of the point-of-sale system in company drive-ins and the
    supply chain management system; and
  *Free cash flow of $45 to $50 million for fiscal 2013.

About Sonic

Sonic, America's Drive-In, originally started as a hamburger and root beer
stand in 1953 in Shawnee, Oklahoma called Top Hat Drive-In, and then changed
its name to Sonic in 1959. The first drive-in to adopt the Sonic name is still
serving customers in Stillwater, Oklahoma. Sonic has more than 3,500 drive-ins
coast to coast, where approximately three million customers eat every day. For
more information about Sonic Corp. and its subsidiaries, visit Sonic at
www.sonicdrivein.com.

Earnings Conference Call

The company will host a conference call and online web simulcast this
afternoon beginning at 5:00 p.m. ET. The conference call can be accessed live
over the phone by dialing (888) 690-2878 or (913) 312-1296 for international
callers. A replay will be available one hour after the call and can be
accessed by dialing (877) 870-5176 or (858) 384-5517 for international
callers; the conference ID is 6986684. The replay will be available until
Monday, April 1, 2013. An online replay of the conference call will be
available approximately two hours after the conclusion of the live broadcast.
A link to this event will be available on the investor section of the
company's website, www.sonicdrivein.com.

This press release contains forward-looking statements within the meaning of
the federal securities laws. Forward-looking statements reflect management's
expectations regarding future events and operating performance and speak only
as of the date hereof. These forward-looking statements involve a number of
risks and uncertainties. Factors that could cause actual results to differ
materially from those expressed in, or underlying, these forward-looking
statements are detailed in the company's annual and quarterly report filings
with the Securities and Exchange Commission. The company undertakes no
obligation to publicly release revisions to these forward-looking statements
to reflect events or circumstances after the date hereof or to reflect the
occurrence of unforeseen events, except as required to be reported under the
rules and regulations of the Securities and Exchange Commission.

The tables that follow provide information regarding the number of company
drive-ins, franchise drive-ins and system drive-ins in operation as of the end
of the periods indicated. In addition, these tables provide information
regarding franchise sales, system growth in sales, and both franchise and
system average drive-in sales and change in same-store sales. System
information includes both company and franchise drive-in information, which we
believe is useful in analyzing the growth of our brand. While we do not record
franchise drive-in sales as revenues, we believe this information is important
in understanding our financial performance since we calculate and record
franchise royalties based on a percentage of franchise sales. This information
also is indicative of the financial health of our franchisees.

^1 Free cash flow is defined as net income plus depreciation, amortization and
stock compensation expense, less capital expenditures.

SONC-G

SONIC CORP.
Unaudited Supplemental Information
(In thousands, except per share amounts)
                                                            
                     Second Quarter Ended          Six Months Ended
                     February 28,   February 29,   February 28,  February 29,
                      2013         2012          2013         2012    
Statement of
Operations
Revenues:
  Company Drive-In   $ 83,706       $ 87,185       $  177,162     $  183,967
  sales
  Franchise
  Drive-Ins:
    Franchise
    royalties and      25,996         25,954          55,916         55,030
    fees
    Lease revenue      949            1,261           2,435          2,549
  Other               490          684           1,636        1,817   
                       111,141        115,084         237,149        243,363
Costs and expenses:
  Company Drive-Ins:
    Food and           23,546         24,686          50,178         52,411
    packaging
    Payroll and
    other employee     31,448         32,740          64,913         67,824
    benefits
    Other operating
    expenses,
    exclusive of
    depreciation and
  amortization        18,811       20,727        40,787       43,638  
  included below
                       73,805         78,153          155,878        163,873
                                                                  
Selling, general and   15,467         16,084          31,597         31,501
administrative
Depreciation and       10,069         10,510          20,664         20,976
amortization
Provision for
impairment of          -              173             -              173
long-lived assets
Other operating       (218    )     (384    )      (211    )     (462    )
income, net
                      99,123       104,536       207,928      216,061 
Income from            12,018         10,548          29,221         27,302
operations
                                                                  
Interest expense       7,448          7,930           15,123         15,971
Interest income        (168    )      (139    )       (309    )      (303    )
Loss from early
extinguishment of     492          -             492          -       
debt
Net interest expense  7,772        7,791         15,306       15,668  
Income before income   4,246          2,757           13,915         11,634
taxes
Provision for income  669          1,080         4,205        4,458   
taxes
Net income           $ 3,577       $ 1,677       $  9,710      $  7,176   
                                                                  
Net income per
share:
  Basic              $ 0.06        $ 0.03        $  0.17       $  0.12    
  Diluted            $ 0.06        $ 0.03        $  0.17       $  0.12    
Weighted average
shares used in
calculation:
  Basic               55,798       60,579        56,735       61,136  
  Diluted             56,423       60,602        57,254       61,170  

SONIC CORP.
Unaudited Supplemental Information
                                                          
                 Second Quarter Ended          Six Months Ended
                 February 28,   February 29,   February 28,     February 29,
                  2013         2012         2013            2012      
Drive-Ins in
Operation
  Company:
    Total at
    beginning of   409            446            409               446
    period
    Opened         -              -              -                 -
    Sold to        -              (34     )      -                 (34       )
    franchisees
    Closed (net
    of            (4      )     -            (4        )      -         
    re-openings)
    Total at end  405          412          405             412       
    of period
  Franchise:
    Total at
    beginning of   3,140          3,109          3,147             3,115
    period
    Opened         3              10             4                 12
    Acquired       -              34             -                 34
    from company
    Closed (net
    of            (22     )     (15     )     (30       )      (23       )
    re-openings)
    Total at end  3,121        3,138        3,121           3,138     
    of period
  System-wide:
    Total at
    beginning of   3,549          3,555          3,556             3,561
    period
    Opened         3              10             4                 12
    Closed (net
    of            (26     )     (15     )     (34       )      (23       )
    re-openings)
    Total at end  3,526        3,550        3,526           3,550     
    of period
                                                                 
                                                                 
                 Second Quarter Ended          Six Months Ended
                 February 28,   February 29,   February 28,     February 29,
                  2013         2012         2013            2012      
                 ($ in thousands)              ($ in thousands)
Sales Analysis
  Company
  Drive-Ins:
    Total sales  $ 83,706       $ 87,185       $ 177,162         $ 183,967
    Average
    drive-in       207            201            437               419
    sales
    Change in
    same-store     1.9     %      3.1     %      3.1       %       1.4       %
    sales
  Franchised
  Drive-Ins:
    Total sales  $ 712,934      $ 712,903      $ 1,527,736       $ 1,494,126
    Average
    drive-in       232            229            494               480
    sales
    Change in
    same-store     -0.3    %      3.6     %      1.3       %       1.7       %
    sales
  System-wide:
    Change in      -0.5    %      3.6     %      1.6       %       2.0       %
    total sales
    Average
    drive-in     $ 229          $ 225          $ 487             $ 472
    sales
    Change in
    same-store     0.0     %      3.5     %      1.5       %       1.7       %
    sales
                                                                 
                                                                 
Note: Change in same-store sales based on restaurants open for a minimum of 15
months.

SONIC CORP.
Unaudited Supplemental Information
                                                            
                  Second Quarter Ended             Six Months Ended
                  February 28,      February 29,   February 28,  February 29,
                    2013            2012         2013         2012    
Revenues (in
thousands)
   Company        $  83,706         $  87,185      $  177,162     $  183,967
   Drive-In sales
   Franchise
   Drive-Ins:
      Franchise      25,821            25,590         55,736         54,381
      royalties
      Franchise      175               364            180            649
      fees
      Lease          949               1,261          2,435          2,549
      revenue
   Other            490             684          1,636        1,817   
                  $  111,141       $  115,084    $  237,149    $  243,363 
                                                                  
                  Second Quarter Ended             Six Months Ended
                  February 28,      February 29,   February 28,  February 29,
                    2013            2012         2013         2012    
Margin Analysis
(percentage of
Company Drive-In
sales)
   Company
   Drive-Ins:
      Food and       28.1     %        28.3    %      28.3    %      28.5    %
      packaging
      Payroll and
      employee       37.6     %        37.5    %      36.6    %      36.9    %
      benefits
      Other
      operating     22.5     %       23.8    %     23.1    %     23.7    %
      expenses
                     88.2     %        89.6    %      88.0    %      89.1    %
                                                                  
                                                                  
                                                   February 28,   August 31,
                                                     2013         2012    
Balance Sheet                                      (In thousands)
Data
Cash and cash                                      $  42,487      $  52,647
equivalents
Current assets                                        96,108         107,151
Property,
equipment and                                         397,883        443,008
capital leases,
net
Total assets                                          624,663        680,760
                                                                  
Current liabilities, including
capital lease obligations and                         63,482         80,516
long-term debt due within one
year
Obligations under
capital leases                                        25,004         27,377
due after one
year
Long-term debt
due after one                                         439,744        466,613
year
Total liabilities                                     575,908        621,513
Stockholders'                                      $  48,755      $  59,247
equity

Contact:

Claudia San Pedro
Vice President of Investor Relations, Communications and Treasurer
405-225-4846