<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended August 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from __________ to __________
Commission File Number: 018859
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Sonic Corp. Savings and Profit Sharing Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Sonic Corp.
101 Park Avenue
Oklahoma City, Oklahoma 73102
Sonic Corp. has included the following financial statements and
supplementary financial information in this report:
<TABLE>
<CAPTION>
Pages
-----
<S> <C>
Report of Independent Auditors 1
Statements of Net Assets Available for Benefits 2
Statements of Changes in Net Assets Available for Benefits 6
Line 27a -- Schedule of Assets Held for Investment Purposes 15
Line 27d -- Schedule of Reportable Transactions 16
</TABLE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the trustees (or other persons who administer the employee benefit
plan) have caused the undersigned, duly-authorized, to sign this report on their
behalf on this 8th day of March, 1999.
Sonic Corp.
By: /s/ Ronald L. Matlock
---------------------------------------------
Ronald L. Matlock, Vice President and General Counsel
<PAGE>
Sonic Corp. Savings and Profit Sharing Plan
Financial Statements
and Supplemental Schedules
Years ended August 31, 1998 and 1997
CONTENTS
<TABLE>
<S> <C>
Report of Independent Auditors 1
Financial Statements
Statements of Net Assets Available for Benefits 2
Statements of Changes in Net Assets Available for Benefits 6
Notes to Financial Statements 10
Supplemental Schedules
Line 27a--Schedule of Assets Held for Investment Purposes 15
Line 27d--Schedule of Reportable Transactions 16
</TABLE>
Party-in-interest transactions are not presented because there are no
party-in-interest transactions which are prohibited by ERISA Section 406 and
for which there is no statutory or administrative exemption.
<PAGE>
Report of Independent Auditors
The Plan Administrator
Sonic Corp. Savings and Profit Sharing Plan
We have audited the accompanying statements of net assets available for benefits
of Sonic Corp. Savings and Profit Sharing Plan as of August 31, 1998 and 1997,
and the related statements of changes in net assets available for benefits for
the years then ended. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
August 31, 1998 and 1997, and the changes in its net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment purposes as of August 31, 1998, and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the 1998 basic financial statements. The fund information
in the statements of net assets available for benefits and the statements of
changes in net assets available for benefits is presented for purposes of
additional analysis rather than to present the net assets available for benefits
and changes in net assets available for benefits of each fund. The supplemental
schedules and fund information have been subjected to the auditing procedures
applied in our audits of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
ERNST & YOUNG LLP
Oklahoma City, Oklahoma
February 26, 1999
1
<PAGE>
Sonic Corp. Savings and Profit Sharing Plan
Statements of Net Assets Available for Benefits
With Fund Information
<TABLE>
<CAPTION>
AUGUST 31, 1998
----------------------------------------------------------------------
FUND INFORMATION
----------------------------------------------------------------------
AMERICAN AMERICAN
PERFORMANCE PERFORMANCE
CASH INTERMEDIATE AIM AIM
MANAGEMENT BOND CONSTELLATION VALUE
FUND FUND FUND FUND
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments:
Shares of registered investment companies $219,163 $127,592 $668,679 $551,042
Sonic Corp. common stock, 14,347 shares - - - -
Participant notes receivable - - - -
----------------------------------------------------------------------
Total investments 219,163 127,592 668,679 551,042
Receivables:
Contributions:
Participants 869 541 3,849 2,659
Employer 22,409 3,428 23,985 15,089
Accrued interest 924 606 - -
----------------------------------------------------------------------
Total receivables 24,202 4,575 27,834 17,748
Cash 4 - - -
----------------------------------------------------------------------
Net assets available for benefits $243,369 $132,167 $696,513 $568,790
----------------------------------------------------------------------
----------------------------------------------------------------------
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
AUGUST 31, 1998
- ------------------------------------------------------------------------------------------------------------
FUND INFORMATION
- ------------------------------------------------------------------------------------------------
AMERICAN NEUBERGER
AADVANTAGE FEDERATED & BERMAN SONIC
BALANCED MAX CAP GUARDIAN STOCK LOAN
FUND FUND TRUST FUND FUND FUND TOTAL
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$747,172 $579,962 $774,402 $ - $ - $3,668,012
- - - 228,662 - 228,662
- - - - 171,770 171,770
- -----------------------------------------------------------------------------------------------------------------
747,172 579,962 774,402 228,662 171,770 4,068,444
1,327 2,386 3,472 1,706 - 16,809
10,359 17,118 20,973 9,766 - 123,127
- - - - - 1,530
- -----------------------------------------------------------------------------------------------------------------
11,686 19,504 24,445 11,472 - 141,466
- - - 12,515 - 12,519
- -----------------------------------------------------------------------------------------------------------------
$758,858 $599,466 $798,847 $252,649 $171,770 $4,222,429
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
Sonic Corp. Savings and Profit Sharing Plan
Statements of Net Assets Available for Benefits
With Fund Information (continued)
<TABLE>
<CAPTION>
AUGUST 31, 1997
----------------------------------------------------------------------
FUND INFORMATION
----------------------------------------------------------------------
AMERICAN AMERICAN
PERFORMANCE PERFORMANCE
CASH INTERMEDIATE AIM AIM
MANAGEMENT BOND COMSTELLATION VALUE
FUND FUND FUND FUND
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments:
Shares of registered investment companies $228,523 $106,549 $787,511 $473,434
Sonic Corp. common stock, 8,016 shares - - - -
Participant notes receivable - - - -
----------------------------------------------------------------------
Total investments 228,523 106,549 787,511 473,434
Receivables:
Contributions:
Participants 631 609 3,324 1,669
Employer 17,772 2,873 17,709 10,048
Accrued interest 1,012 529 - -
----------------------------------------------------------------------
Total receivables 19,415 4,011 21,033 11,717
----------------------------------------------------------------------
Net assets available for benefits $247,938 $110,560 $808,544 $485,151
----------------------------------------------------------------------
----------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
AUGUST 31, 1997
- -----------------------------------------------------------------------------------------------------------------
FUND INFORMATION
- -------------------------------------------------------------------------------------------------
AMERICAN NEUBERGER
AADVANTAGE FEDERATED & BERMANN SONIC
BALANCED MAX CAP GUARDIAN STOCK LOAN
FUND FUND TRUST FUND FUND FUND TOTAL
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$708,773 $424,745 $879,292 $ - $ - $3,608,827
- - - 177,365 - 177,365
- - - - 190,015 190,015
- -----------------------------------------------------------------------------------------------------------------
708,773 424,745 879,292 177,365 190,015 3,976,207
1,186 1,554 2,664 1,226 - 12,863
7,319 6,625 13,734 4,831 - 80,911
- - - - - 1,541
- -----------------------------------------------------------------------------------------------------------------
8,505 8,179 16,398 6,057 - 95,315
- -----------------------------------------------------------------------------------------------------------------
$717,278 $432,924 $895,690 $183,422 $190,015 $4,071,522
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES.
5
<PAGE>
Sonic Corp. Savings and Profit Sharing Plan
Statements of Changes in Net Assets Available for Benefits
With Fund Information
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31, 1998
----------------------------------------------------------------------
FUND INFORMATION
----------------------------------------------------------------------
AMERICAN AMERICAN
PERFORMANCE PERFORMANCE
CASH INTERMEDIATE AIM AIM
MANAGEMENT BOND CONSTELLATION VALUE
FUND FUND FUND FUND
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions (deductions) to net assets attributed to:
Investment income:
Net appreciation (depreciation) in
fair value of investments $ - $ 3,227 $(121,448) $ 8,542
Interest and dividends 11,191 7,440 - -
----------------------------------------------------------------------
Net investment income (loss) 11,191 10,667 (121,448) 8,542
Contributions:
Participants 12,233 15,172 90,438 57,827
Employer (including profit sharing
contribution of $100,000) 30,030 9,948 63,266 38,452
----------------------------------------------------------------------
Total additions (deductions) 53,454 35,787 32,256 104,821
Deductions from net assets attributed to:
Benefits paid to participants 10,397 12,595 145,483 55,082
Loan fees and trustee fees - - 6 5
----------------------------------------------------------------------
Total deductions 10,397 12,595 145,489 55,087
----------------------------------------------------------------------
Net increase (decrease) prior to
interfund transfers 43,057 23,192 (113,233) 49,734
Interfund transfers (47,626) (1,585) 1,202 33,905
----------------------------------------------------------------------
Net increase (decrease) (4,569) 21,607 (112,031) 83,639
Net assets available for benefits:
Beginning of year 247,938 110,560 808,544 485,151
----------------------------------------------------------------------
End of year $243,369 $132,167 $ 696,513 $568,790
----------------------------------------------------------------------
----------------------------------------------------------------------
6
<PAGE>
YEAR ENDED AUGUST 31, 1998
- ----------------------------------------------------------------------------------------------------------------
FUND INFORMATION
- -----------------------------------------------------------------------------------------------
AMERICAN NEUBERGER
AADVANTAGE FEDERATED & BERMAN SONIC
BALANCED MAX CAP GUARDIAN STOCK LOAN
FUND FUND TRUST FUND FUND FUND TOTAL
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 20,469 $ 19,544 $(208,982) $ 4,901 $ - $ (273,747)
- 4,771 1,502 - 16,508 41,412
- ----------------------------------------------------------------------------------------------------------------
20,469 24,315 (207,480) 4,901 16,508 (232,335)
40,199 76,314 91,384 37,493 - 421,060
26,210 46,555 58,508 27,114 - 300,083
- ----------------------------------------------------------------------------------------------------------------
86,878 147,184 (57,588) 69,508 16,508 488,808
44,905 16,893 42,706 2,817 7,001 337,879
- - 11 - - 22
- ----------------------------------------------------------------------------------------------------------------
44,905 16,893 42,717 2,817 7,001 337,901
- ----------------------------------------------------------------------------------------------------------------
41,973 130,291 (100,305) 66,691 9,507 150,907
(393) 36,251 3,462 2,536 (27,752) -
- ----------------------------------------------------------------------------------------------------------------
41,580 166,542 (96,843) 69,227 (18,245) 150,907
717,278 432,924 895,690 183,422 190,015 4,071,522
- ----------------------------------------------------------------------------------------------------------------
$758,858 $599,466 $ 798,847 $252,649 $171,770 $4,222,429
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
Sonic Corp. Savings and Profit Sharing Plan
Statements of Changes in Net Assets Available for Benefits
With Fund Information (continued)
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31, 1997
-----------------------------------------------------------------------------------
FUND INFORMATION
-----------------------------------------------------------------------------------
AMERICAN AMERICAN
PERFORMANCE PERFORMANCE AMERICAN
CASH INTERMEDIATE AIM AIM AADVANTAGE
MANAGEMENT BOND CONSTELLATION VALUE BALANCED
FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation) in
fair value of investments $ 5,411 $ 3,474 $158,871 $107,404 $128,111
Interest and dividends 9,053 3,835 - - -
-----------------------------------------------------------------------------------
Net investment income (loss) 14,464 7,309 158,871 107,404 128,111
Contributions:
Participants 14,273 13,561 87,566 47,127 33,688
Employer (including profit sharing
contribution of $75,000) 26,884 8,946 53,242 30,154 22,672
-----------------------------------------------------------------------------------
Total additions 55,621 29,816 299,679 184,685 184,471
Deductions from net assets attributed to:
Benefits paid to participants 112,570 2,342 53,706 24,427 21,642
Loan fees and trustee fees 176 5 276 104 121
-----------------------------------------------------------------------------------
Total deductions 112,746 2,347 53,982 24,531 21,763
-----------------------------------------------------------------------------------
Net increase (decrease) prior to
interfund transfers (57,125) 27,469 245,697 160,154 162,708
Interfund transfers 305,063 83,091 562,847 324,997 554,570
-----------------------------------------------------------------------------------
Net increase (decrease) 247,938 110,560 808,544 485,151 717,278
Net assets available for benefits:
Beginning of year - - - - -
-----------------------------------------------------------------------------------
End of year $247,938 $110,560 $808,544 $485,151 $717,278
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31, 1997
- ---------------------------------------------------------------------------------------------------------------------
FUND INFORMATION
- ---------------------------------------------------------------------------------------------------------
NEUBERGER CAPITAL
FEDERATED & BERMAN SONIC PRESERVA-
MAX CAP GUARDIAN STOCK STOCK GROWTH BALANCED TION LOAN
FUND TRUST FUND FUND FUND FUND FUND FUND FUND TOTAL
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$105,452 $222,808 $ (260) $ - $ - $ - $ - $ - $ 731,271
2,844 873 - - - - - 9,335 25,940
- ---------------------------------------------------------------------------------------------------------------------
108,296 223,681 (260) - - - - 9,335 757,211
34,339 64,189 20,691 - - - - - 315,434
19,668 41,625 14,235 - - - - - 217,426
- ---------------------------------------------------------------------------------------------------------------------
162,303 329,495 34,666 - - - - 9,335 1,290,071
20,781 4,114 7,657 - - - - - 247,239
76 214 35 - - - - - 1,007
- ---------------------------------------------------------------------------------------------------------------------
20,857 4,328 7,692 - - - - - 248,246
- ---------------------------------------------------------------------------------------------------------------------
141,446 325,167 26,974 - - - - 9,335 1,041,825
291,478 570,523 156,448 (421,260) (1,503,860) (790,404) (223,343) 89,850 -
- ---------------------------------------------------------------------------------------------------------------------
432,924 895,690 183,422 (421,260) (1,503,860) (790,404) (223,343) 99,185 1,041,825
- - - 421,260 1,503,860 790,404 223,343 90,830 3,029,697
- ---------------------------------------------------------------------------------------------------------------------
$432,924 $895,690 $183,422 $ - $ - $ - $ - $190,015 $4,071,522
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES.
9
<PAGE>
Sonic Corp. Savings and Profit Sharing Plan
Notes to Financial Statements
August 31, 1998 and 1997
1. DESCRIPTION OF PLAN
The following description of the Sonic Corp. (the "Company") Savings and Profit
Sharing Plan (the "Plan") provides only general information. Participants should
refer to the Plan agreement (as amended) for a more complete description of the
Plan's provisions.
GENERAL
The Plan is a defined contribution plan covering all full-time employees of the
Company who have one year of service. It is subject to the provisions of the
Employee Retirement Income Security Act of 1974 ("ERISA").
CONTRIBUTIONS
Each year, participants may contribute up to 11% of pretax annual compensation,
as defined in the Plan. Participants may also contribute amounts representing
distributions from other qualified defined benefit or defined contribution
plans. The Company may voluntarily match a percentage of participants'
contributions to the Plan. Additional profit sharing amounts may be contributed
at the option of the Company's board of directors. Contributions are subject
to certain limitations.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's contribution
and allocations of (a) the Company's contribution and (b) Plan earnings.
Allocations are based on participant compensation or account balances, as
defined. Forfeited balances of terminated participants' nonvested accounts
are used to reduce trustee fees, then future Company contributions. The
benefit to which a participant is entitled is the benefit that can be
provided from the participant's vested account.
10
<PAGE>
Sonic Corp. Savings and Profit Sharing Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF PLAN (CONTINUED)
VESTING
Participants are immediately vested in their contributions plus actual earnings
thereon. Vesting in the Company's discretionary contribution portion of their
accounts plus actual earnings thereon is based on years of continuous service. A
participant is 100% vested after six years of credited service.
INVESTMENT OPTIONS
Beginning on September 1, 1996, participants can direct their account balances
to be invested in one of eight investment funds or a combination of these
funds. Participants may change their investment options daily. Investment
funds consist of the following:
AMERICAN PERFORMANCE CASH MANAGEMENT FUND--Funds are invested in very
short-term high quality loans to the U.S. Government, banks, and
corporations.
AMERICAN PERFORMANCE INTERMEDIATE BOND FUND--Funds are invested in a
diversified portfolio of intermediate bonds issued by the U.S.
Government, U.S. Government agencies, and individual corporations.
AIM CONSTELLATION FUND--Funds are invested in common stocks, with
emphasis on medium-sized and smaller emerging growth companies.
AIM VALUE FUND--Funds are invested in common stocks of companies that
are undervalued relative to the stock market as a whole, but whose
earnings are starting to improve.
AMERICAN AADVANTAGE BALANCED FUND--Funds are invested in bonds and
common stock, with emphasis on income and capital appreciation.
FEDERATED MAX CAP FUND--Funds are invested in common stocks of the
Standard & Poor's 500 Index.
NEUBERGER & BERMAN GUARDIAN TRUST FUND--Funds are invested in stocks of
companies whose earnings the portfolio manager believes will grow
faster than average.
SONIC STOCK FUND--Funds are invested in the common stock of Sonic Corp.
Prior to September 1, 1996, participants could direct their account balances to
be invested in one of four investment funds or a combination of those funds
(Stock Fund, Growth Fund, Balanced Fund and Capital Preservation Fund).
PARTICIPANT NOTES RECEIVABLE (LOAN FUND)
Participants may borrow from their fund accounts a minimum of $1,000 up to a
maximum equal to the lesser of $50,000 or 50% of their vested account balance.
Loan transactions are treated as a transfer to (from) the investment fund from
(to) the Loan Fund. Loan terms range from 1-5 years or up to 10 years for the
purchase of a primary residence. The loans are secured by the balance in
11
<PAGE>
Sonic Corp. Savings and Profit Sharing Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF PLAN (CONTINUED)
the participant's account and bear interest at a rate commensurate with local
prevailing rates as determined quarterly by the Plan Administrator. Interest
rates range from 7% to 10%. Principal and interest are paid ratably through
monthly payroll deductions. Such deductions are remitted by the Company to the
Plan in the month following the payroll deductions.
PAYMENT OF BENEFITS
On termination of service, a participant may elect to receive a lump-sum amount
equal to the value of the participant's vested interest in his or her account,
or upon death, disability or retirement, may elect to receive annual
installments over a period of not more than a participant's assumed life
expectancy.
FORFEITED ACCOUNTS
During the years ended August 31, 1998 and 1997, forfeited nonvested accounts
amounted to $28,136 and $14,352, respectively.
ADMINISTRATION
The Plan is administered by the Company. Administrative expenses, other than
loan fees and trustee fees, incurred by the Plan are paid by the Company. During
the years ended August 31, 1998 and 1997, such expenses amounted to $23,259 and
$19,176, respectively.
12
<PAGE>
Sonic Corp. Savings and Profit Sharing Plan
Notes to Financial Statements (continued)
2. SUMMARY OF ACCOUNTING POLICIES
INVESTMENT VALUATION AND INCOME RECOGNITION
The Plan's investments are stated at fair value. Shares of registered investment
companies are valued at quoted market prices which represent the net asset value
of shares held by the Plan at year end. The Company's common stock is valued at
its quoted market price. Participant notes receivable are valued at cost which
approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date.
RELATED PARTY TRANSACTIONS
Certain Plan investments were shares of a mutual fund managed by BancOklahoma
Trust Company, the trustee as defined by the Plan and, therefore, these
transactions qualify as party-in-interest.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates that affect the
amounts reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
3. INVESTMENTS
The Plan's investments are held by BancOklahoma Trust Company. Investments that
represent 5% or more of the Plan's net assets are separately identified in the
accompanying statements of net assets available for benefits with fund
information.
13
<PAGE>
Sonic Corp. Savings and Profit Sharing Plan
Notes to Financial Statements (continued)
4. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100% vested in their accounts.
5. INCOME TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service
dated October 19, 1992, stating that the Plan is qualified under Section 401(a)
of the Internal Revenue Code (the "Code") and, therefore, the related trust is
exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The Plan Administrator
believes the Plan is being operated in compliance with the applicable
requirements of the Code and, therefore, believes that the Plan is qualified and
the related trust is tax exempt.
6. YEAR 2000 (UNAUDITED)
The Plan Sponsor has determined that it will be necessary to take certain steps
in order to ensure that the Plan's information systems are prepared to handle
year 2000 dates. The Plan Sponsor is taking a two phase approach. The first
phase addresses internal systems that must be modified or replaced to function
properly. Both internal and external resources are being utilized to replace or
modify existing software applications, and test the software and equipment for
the year 2000 modifications. The Plan Sponsor anticipates substantially
completing this phase of the project by June 1999. Costs associated with
modifying software and equipment are not estimated to be significant and will be
paid by the Plan Sponsor.
For the second phase of the project, Plan management established formal
communications with its third party service providers to determine that they
have developed plans to address their own year 2000 problems as they relate to
the Plan's operations. All third party service providers have indicated that
they will be year 2000 compliant by early 1999. If modification of data
processing systems of either the Plan, the Plan Sponsor, or its service
providers are not completed timely, the year 2000 problem could have a material
impact on the operations of the Plan. Plan management has not developed a
contingency plan, because they are confident that all systems will be year 2000
ready.
14
<PAGE>
SUPPLEMENTAL SCHEDULES
<PAGE>
Sonic Corp. Savings and Profit Sharing Plan
Line 27a--Schedule of Assets Held for Investment Purposes
August 31, 1998
<TABLE>
<CAPTION>
DESCRIPTION OF INVESTMENT,
IDENTITY OF ISSUE, BORROWER, INCLUDING MATURITY DATE, RATE OF CURRENT
LESSOR OR SIMILAR PARTY INTEREST, PAR OR MATURITY VALUE COST VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
*American Performance Cash Management Fund 219,163 shares $ 219,163 $ 219,163
*American Performance Intermediate Bond Fund 12,152 shares 123,399 127,592
AIM Constellation Fund 28,885 shares 738,930 668,679
AIM Value Fund 17,372 shares 529,061 551,042
American AAdvantage Balanced Fund 56,094 shares 797,488 747,172
Federated Max Cap Fund 29,100 shares 496,115 579,962
Neuberger & Berman Guardian Trust Fund 54,382 shares 856,828 774,402
----------------------------
3,760,984 3,668,012
*Sonic Corp. 14,347 shares of common stock 226,795 228,662
*Participant notes receivable 7% to 10% - 171,770
----------------------------
$3,987,779 $4,068,444
----------------------------
----------------------------
</TABLE>
*Party-in-interest.
15
<PAGE>
Sonic Corp. Savings and Profit Sharing Plan
Line 27d--Schedule of Reportable Transactions
Year ended August 31, 1998
<TABLE>
<CAPTION> (h)
CURRENT
VALUE (i)
(c) (d) (g) OF ASSET ON NET
(a) (b) PURCHASE SELLING COST OF TRANSACTION GAIN OR
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSETS PRICE PRICE ASSET DATE (LOSS)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CATEGORY (iii)--SERIES OF
TRANSACTIONS IN EXCESS OF
5% OF PLAN ASSETS:
SEI Corporation AIM Constellation Fund:
Purchases $247,487 $247,487
Sales $186,459 $164,072 $186,459 $22,387
AIM Value Fund:
Purchases $191,912 $191,912
Sales $ 68,953 $ 56,082 $ 68,953 $12,871
American AAdvantage Balanced
Fund:
Purchases $215,754 $215,754
Sales $ 64,227 $ 60,640 $ 64,227 $ 3,587
Neuberger & Berman Guardian
Trust Fund:
Purchases $236,139 $236,139
Sales $ 68,962 $ 55,950 $ 68,962 $13,012
</TABLE>
Columns (e) and (f) are not applicable.
There were no category (i), (ii) or (iv) reportable transactions during the year
ended August 31, 1998.
16
<PAGE>
Exhibit 23.1
Consent of Independent Auditors
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 333-26359) pertaining to the Sonic Corp. Savings and Profit Sharing Plan
of our report dated February 26, 1999, with respect to the financial statements
and schedules of Sonic Corp. Savings and Profit Sharing Plan included in the
Plan's Annual Report (Form 11-K), for the year ended August 31, 1998, filed with
the Securities and Exchange Commission.
ERNST & YOUNG LLP
Oklahoma City, Oklahoma
March 4, 1999
