EDMONTON, March 16, 2017 /CNW/ - AutoCanada Inc. (the
"Company" or "AutoCanada") (TSX: ACQ) one of Canada's largest multi-location automobile
dealership groups, today announced financial results for the year
ended December 31, 2016 and the
three-month period ended December 31,
2016.
2016 Financial Summary
- Revenue from existing and new dealerships remained flat at
$2,891.6 million in 2016 from
$2,903.8 million in 2015.
- Gross profit from existing and new dealerships remained flat at
$486.1 million in 2016 from
$487.7 million in 2015.
- The Company generated net earnings attributable to AutoCanada
shareholders of $2.6 million (after
impairment expense of $54.1 million)
and basic earnings per share of $0.09
versus basic earnings per share of $0.93 in 2015.
- Adjusted net earnings attributable to AutoCanada shareholders
decreased by 1.0% to $39.9 million in
2016 from $40.3 million in 2015
equivalent to basic adjusted net earnings per share of $1.45 versus $1.64
in 2015.
- EBITDA attributable to AutoCanada shareholders increased by
5.2% to $94.5 million in 2016
compared to $89.8 million in
2015.
- Same store revenue decreased by 5.6% in 2016 compared to 2015.
Same store gross profit decreased by 5.4% in 2016 compared to
2015.
- Free cash flow increased to $96.3
million in 2016 or $3.53 per
share as compared to $38.7 million or
$1.57 per share in 2015.
- Adjusted free cash flow increased to $68.6 million in 2016 or $2.51 per share as compared to $38.8 million or $1.59 per share in 2015.
2016 Q4 Financial Summary:
- Revenue from existing and new dealerships decreased by 6.4%, to
$629.3 million in the fourth quarter
of 2016 from $672.3 million in the
same quarter in 2015.
- Gross profit from existing and new dealerships decreased by
5.8% to $116.8 million in the fourth
quarter of 2016 from $123.9 million
in the same quarter in 2015.
- Adjusted EBITDA attributable to AutoCanada shareholders
decreased by 26.9% to $19.0 million
in the fourth quarter of 2016 from $26.0
million in the same quarter in 2015.
- EBITDA attributable to AutoCanada shareholders increased by
8.2% to $25.3 million in the fourth
quarter of 2016 from $23.4 million in
the same quarter in 2015.
- The Company generated net earnings attributable to AutoCanada
shareholders of $13.8 million and
basic earnings per share of $0.50
versus a $7.4 million loss (after
impairment expense of $18.1 million)
and basic earnings per share of ($0.29) in the fourth quarter of 2015.
- The Company generated adjusted net earnings attributable to
AutoCanada shareholders of $7.5
million compared to $8.6
million in the same quarter in 2015. Basic adjusted net
earnings per share of $0.28 versus
$0.34 in the fourth quarter of
2015.
- Same store revenue decreased by 10.0% in the fourth quarter of
2016 compared to the same quarter in 2015. Same store gross profit
decreased by 5.8% in the fourth quarter of 2016 compared to the
same quarter in 2015, while gross profit percentage increased to
18.9% versus 18.0% in the same period last year.
- Free cash flow increased to $23.4
million in the fourth quarter of 2016 or $0.86 per share as compared to $9.1 million or $0.36 per share in the same quarter in 2015.
- Adjusted free cash flow increased to $13.1 million in the fourth quarter of 2016 or
$0.48 per share as compared to
$8.1 million or $0.32 per share in the same quarter in 2015.
"Fiscal 2016 capped off the second consecutive year where our
core markets faced deteriorating business conditions. However,
wherever there are challenges there are also opportunities, and I
believe AutoCanada is well-positioned to execute on its strategy
and create value for shareholders," said Steven Landry Chief Executive Officer. "We
are responding to economic conditions in our key markets by
focusing on market share, operating expenses, accretive
acquisitions, and delivering consistent performance across all of
our dealerships."
Dividends
Management reviews the Company's financial results on a monthly
basis. The Board of Directors reviews the financial results
periodically to determine whether a dividend shall be paid based on
a number of factors.
The following table summarizes the dividends declared by the
Company in 2016:
|
|
|
|
Record
Date
|
Payment
Date
|
Per Share
($)
|
Total
($)
|
February 29,
2016
|
March 15,
2016
|
0.25
|
6,840
|
May 31,
2016
|
June 15,
2016
|
0.10
|
2,735
|
August 31,
2016
|
September 15,
2016
|
0.10
|
2,735
|
November 30,
2016
|
December 15,
2016
|
0.10
|
2,736
|
|
|
0.55
|
15,046
|
On February 21, 2017, the Board
declared a quarterly eligible dividend of $0.10 per common share on AutoCanada's
outstanding Class A shares, payable on March
15, 2017 to shareholders of record at the close of business
on February 28, 2017.
For purposes of the enhanced dividend tax credit rules contained
in the Income Tax Act (Canada)
(the "ITA") and any corresponding provincial and territorial tax
legislation, all dividends paid by AutoCanada or any of its
subsidiaries in 2010 and thereafter are designated as "eligible
dividends" (as defined in 89(1) of the ITA), unless otherwise
indicated. Please consult with your own tax advisor for advice with
respect to the income tax consequences to you of AutoCanada Inc.
designating dividends as "eligible dividends".
Outlook
The outlook regarding new retail vehicle sales in Canada is predicted by independent forecasters
to be down 1% - 2%. In Canada,
factors contributing to new vehicle sales will vary widely by
province and brands.
While new automobile sales in our core Alberta market continued to decline in 2016,
AutoCanada is cautiously optimistic that renewed activity in the
energy sector will slowly begin to translate favourably into
improvements in year‑over‑year sales figures in the latter half of
the year or early 2018. We will remain focused on delivering better
financial performance irrespective of the impact of oil prices.
Of the 17 dealerships that became same store in 2016, 11 of
these are located in Alberta. As a
result, we anticipate same‑store sales results will continue to be
impacted in 2017 by the depressed Alberta economy. We will continue to dedicate
significant resources to newly acquired dealerships to integrate
acquisitions and position them to be successful in their respective
markets.
We are committed to delivering meaningful returns to our
shareholders. Although we continue to confront headwinds in key
markets, we believe that we can generate better results by
improving employee productivity, realizing the benefits of our
scale and continuing to grow our brand and geographic footprints
with accretive acquisitions.
AutoCanada plans to spend approximately $30.9 million in 2017 on dealership relocations
and undertaking expansions. We are under construction on the
relocation of Audi Winnipeg, which we anticipate will lead to
increased customer traffic and sales. We also plan to begin
construction on two new open point locations in Calgary and Ottawa,
Ontario.
AutoCanada's five‑year capital spending outlook is approximately
$145.3 million. This level of
spending, along with the Company's current dividend commitments,
are expected to be balanced with internally generated cash
flow.
SELECTED ANNUAL FINANCIAL INFORMATION
The following
table shows the results of the Company for the years ended
December 31, 2016, December 31, 2015 and December 31, 2014. The results of operations for
these years are not necessarily indicative of the results of
operations to be expected in any given comparable period.
|
|
|
|
(in thousands of
dollars, except Gross Profit %, Earnings per share,
and
Operating
Data)
|
2016
|
2015
|
2014
|
Income Statement
Data
|
|
|
|
|
New
vehicles
|
1,652,795
|
1,668,237
|
1,342,346
|
|
Used
vehicles
|
725,430
|
704,569
|
495,352
|
|
Parts, service and
collision repair
|
382,933
|
387,614
|
255,707
|
|
Finance, insurance
and other
|
130,423
|
143,383
|
121,373
|
Revenue
|
2,891,581
|
2,903,803
|
2,214,778
|
|
New
vehicles
|
118,297
|
122,408
|
106,002
|
|
Used
vehicles
|
47,192
|
40,629
|
29,501
|
|
Parts, service and
collision
repair
|
201,259
|
193,868
|
128,566
|
|
Finance, insurance
and other
|
119,385
|
130,804
|
109,080
|
Gross
profit
|
486,133
|
487,709
|
373,149
|
Gross Profit
%
|
16.8%
|
16.8%
|
16.8%
|
Operating
expenses
|
400,417
|
395,877
|
290,904
|
Operating expense as
a % of gross profit
|
82.4%
|
81.2%
|
78.0%
|
Income from loan to
associates
|
1,165
|
49
|
-
|
Income from
investments in associates
|
-
|
-
|
3,490
|
Impairment (recovery)
of intangible assets and goodwill
|
54,096
|
18,757
|
(1,767)
|
Net earnings
attributable to AutoCanada shareholders
|
2,596
|
22,821
|
53,132
|
Adjusted net earnings
attributable to AutoCanada shareholders
|
39,926
|
40,343
|
51,624
|
EBITDA attributable
to AutoCanada shareholders
|
94,486
|
89,838
|
89,434
|
EBITDA % of
Sales
|
3.3%
|
3.1%
|
4.0%
|
Free cash
flow
|
96,288
|
38,675
|
63,723
|
Adjusted free cash
flow
|
68,566
|
38,796
|
62,082
|
Basic earnings per
share
|
0.09
|
0.93
|
2.31
|
Diluted earnings per
share
|
0.09
|
0.92
|
2.30
|
Basic adjusted
earnings per share
|
1.46
|
1.64
|
2.24
|
Diluted adjusted
earnings per share
|
1.45
|
1.64
|
2.23
|
Dividends declared
per share
|
0.55
|
1.00
|
0.94
|
Operating
Data
|
|
|
|
Vehicles (new and
used) sold
|
59,593
|
62,799
|
52,147
|
New vehicles
sold
|
40,032
|
42,457
|
36,422
|
New retail vehicles
sold
|
32,991
|
35,323
|
30,346
|
New fleet vehicles
sold
|
7,041
|
7,134
|
6,076
|
Used retail vehicles
sold
|
19,561
|
20,342
|
15,725
|
Number of service
& collision repair orders completed
|
836,970
|
847,702
|
601,597
|
Absorption
rate
|
86%
|
91%
|
85%
|
# of dealerships at
year end
|
55
|
54
|
48
|
# of same store
dealerships
|
44
|
28
|
23
|
# of service bays at
year end
|
928
|
912
|
822
|
Same store revenue
growth
|
(5.6)%
|
(5.9)%
|
8.9%
|
Same store gross
profit growth
|
(5.4)%
|
(11.7)%
|
7.9%
|
*See the Company's
Management's Discussion and Analysis for the year ended December
31, 2016 for complete footnote disclosures.
|
SELECTED QUARTERLY INFORMATION
The following table
shows the unaudited results of the Company for each of the eight
most recently completed quarters. The results of operations for
these periods are not necessarily indicative of the results of
operations to be expected in any given comparable period.
|
|
|
|
|
|
|
|
|
(in thousands of
dollars, except Gross Profit %,
Earnings per share, and Operating Data)
|
Q4
2016
|
Q3
2016
|
Q2
2016
|
Q1
2016
|
Q4
2015
|
Q3
2015
|
Q2
2015
|
Q1
2015
|
Income Statement
Data
|
|
|
|
|
|
|
|
|
|
New
vehicles
|
348,107
|
444,482
|
497,025
|
363,181
|
368,242
|
471,018
|
483,435
|
345,542
|
|
Used
vehicles
|
157,724
|
178,582
|
208,016
|
180,108
|
167,100
|
179,270
|
194,956
|
163,243
|
|
Parts, service and
collision repair
|
92,310
|
95,585
|
100,317
|
94,721
|
102,220
|
93,139
|
99,304
|
92,951
|
|
Finance, insurance
and other
|
31,133
|
33,529
|
36,899
|
28,862
|
34,752
|
37,778
|
39,182
|
31,671
|
Revenue
|
629,274
|
752,178
|
842,257
|
666,872
|
672,314
|
781,205
|
816,877
|
633,407
|
|
New
vehicles
|
25,042
|
31,578
|
34,410
|
27,267
|
27,482
|
34,300
|
34,861
|
25,765
|
|
Used
vehicles
|
10,064
|
12,950
|
13,758
|
10,420
|
10,326
|
10,949
|
11,000
|
8,354
|
|
Parts, service and
collision
repair
|
52,957
|
47,676
|
52,957
|
47,669
|
51,760
|
48,336
|
49,859
|
43,913
|
|
Finance, insurance
and other
|
28,722
|
30,733
|
33,577
|
26,353
|
34,354
|
35,088
|
33,955
|
27,407
|
Gross
profit
|
116,785
|
122,937
|
134,702
|
111,709
|
123,922
|
128,673
|
129,675
|
105,439
|
Gross Profit
%
|
18.6%
|
16.3%
|
16.0%
|
16.8%
|
18.4%
|
16.5%
|
15.9%
|
16.6%
|
Operating
expenses
|
97,397
|
99,041
|
107,932
|
96,047
|
101,310
|
100,824
|
100,568
|
93,175
|
Operating expenses as
a % of gross profit
|
83.4%
|
80.6%
|
80.1%
|
86.0%
|
81.8%
|
78.4%
|
77.6%
|
88.4%
|
Income from loans to
associates
|
(367)
|
607
|
610
|
315
|
49
|
-
|
-
|
-
|
Impairment (recovery)
of intangible assets and goodwill
|
-
|
54,096
|
-
|
-
|
18,757
|
-
|
-
|
-
|
Net (loss) earnings
attributable to AutoCanada shareholders
|
13,785
|
(32,619)
|
14,158
|
7,272
|
(7,631)
|
11,690
|
13,523
|
4,969
|
Adjusted Net earnings
attributable to AutoCanada shareholders
|
7,536
|
10,327
|
13,466
|
8,597
|
8,441
|
12,535
|
13,957
|
5,261
|
EBITDA attributable
to AutoCanada shareholders
|
25,260
|
23,842
|
27,072
|
18,312
|
23,353
|
26,379
|
27,398
|
12,687
|
EBITDA % of
Sales
|
4.0%
|
3.2%
|
3.7%
|
3.2%
|
3.5%
|
3.8%
|
3.8%
|
2.2%
|
Free cash
flow
|
23,424
|
30,897
|
37,922
|
4,045
|
9,066
|
14,955
|
17,776
|
(3,162)
|
Adjusted free cash
flow
|
13,133
|
27,766
|
21,632
|
6,035
|
8,078
|
18,951
|
19,187
|
(7,420)
|
Basic earnings (loss)
per share
|
0.50
|
(1.19)
|
0.53
|
0.27
|
(0.29)
|
0.48
|
0.56
|
0.20
|
Diluted (loss)
earnings per share
|
0.50
|
(1.19)
|
0.53
|
0.27
|
(0.29)
|
0.47
|
0.56
|
0.20
|
Basic adjusted
earnings per share
|
0.28
|
0.38
|
0.49
|
0.31
|
0.34
|
0.51
|
0.56
|
0.22
|
Dividends declared
per share
|
0.10
|
0.10
|
0.10
|
0.25
|
0.25
|
0.25
|
0.25
|
0.25
|
Operating
Data
|
|
|
|
|
|
|
|
|
Vehicles (new and
used) sold
|
12,912
|
15,955
|
17,425
|
13,301
|
14,150
|
17,086
|
17,739
|
13,824
|
New vehicles
sold
|
8,449
|
10,983
|
12,098
|
8,502
|
9,210
|
12,018
|
12,296
|
8,933
|
New retail vehicles
sold
|
7,590
|
8,949
|
9,374
|
7,078
|
8,016
|
9,985
|
9,929
|
7,393
|
New fleet vehicles
sold
|
859
|
2,034
|
2,724
|
1,424
|
1,194
|
2,033
|
2,367
|
1,540
|
Used retail vehicles
sold
|
4,463
|
4,972
|
5,327
|
4,799
|
4,940
|
5,068
|
5,443
|
4,891
|
# of service and
collision repair orders completed
|
217,418
|
209,912
|
227,446
|
209,194
|
230,772
|
202,692
|
215,142
|
199,096
|
Absorption
rate
|
86%
|
89%
|
90%
|
83%
|
93%
|
91%
|
94%
|
85%
|
# of dealerships at
period end
|
55
|
53
|
53
|
53
|
54
|
50
|
49
|
48
|
# of same store
dealerships
|
44
|
33
|
27
|
27
|
28
|
26
|
24
|
23
|
# of service bays at
period end
|
928
|
898
|
898
|
898
|
912
|
862
|
842
|
822
|
Same store revenue
growth
|
(10.0)%
|
(9.2)%
|
(3.2)%
|
(3.1)%
|
(12.1)%
|
(6.9)%
|
(2.8)%
|
(3.5)%
|
Same store gross
profit growth
|
(5.8)%
|
(11.0)%
|
(5.3)%
|
(5.5)%
|
(14.3)%
|
(14.1)%
|
(11.0)%
|
(8.5)%
|
*See the Company's
Management's Discussion and Analysis for the year ended December
31, 2016 for complete footnote disclosures.
|
The following tables summarizes the results for the year ended
December 31, 2016 on a same store
basis by revenue source and compares these results to the same
period in 2015.
Same Store Revenue
and Vehicles Sold
|
|
|
|
Year Ended
December 31
|
(in thousands of
dollars)
|
2016
|
2015
|
|
%
Change
|
Revenue
Source
|
|
|
|
|
|
New vehicles ‑
Retail
|
1,106,413
|
1,214,938
|
|
(8.9)%
|
|
New vehicles ‑
Fleet
|
228,812
|
213,173
|
|
7.3%
|
Total New
vehicles
|
1,335,225
|
1,428,111
|
|
(6.5)%
|
|
Used vehicles ‑
Retail
|
411,122
|
460,237
|
|
(10.7)%
|
|
Used vehicles ‑
Wholesale
|
204,470
|
164,747
|
|
24.1%
|
Total Used
vehicles
|
615,592
|
624,984
|
|
(1.5)%
|
Finance, insurance
and other
|
112,961
|
128,270
|
|
(11.9)%
|
Subtotal
|
2,063,778
|
2,181,365
|
|
(5.4)%
|
Parts, service and
collision repair
|
305,771
|
328,312
|
|
(6.9)%
|
Total
|
2,369,549
|
2,509,677
|
|
(5.6)%
|
|
|
|
|
|
New retail vehicles
sold
|
26,333
|
30,437
|
|
(13.5)%
|
New fleet vehicles
sold
|
6,415
|
6,688
|
|
(4.1)%
|
Used retail vehicles
sold
|
16,840
|
18,238
|
|
(7.7)%
|
Total
|
49,588
|
55,363
|
|
(10.4)%
|
Total vehicles
retailed
|
43,173
|
48,675
|
|
(11.3)%
|
Same Store Gross
Profit and Gross Profit Percentage
|
|
|
|
Year Ended
December 31
|
|
Gross
Profit
|
Gross Profit
%
|
(in thousands of
dollars)
|
2016
|
2015
|
%
Change
|
2016
|
2015
|
Revenue
Source
|
|
|
|
|
|
|
New vehicles ‑
Retail
|
89,997
|
98,492
|
(8.6)%
|
8.1%
|
8.1%
|
|
New vehicles ‑
Fleet
|
6,566
|
6,763
|
(2.9)%
|
2.9%
|
3.2%
|
Total New
vehicles
|
96,563
|
105,255
|
(8.3)%
|
7.2%
|
7.4%
|
|
Used vehicles ‑
Retail
|
35,650
|
34,072
|
4.6%
|
8.7%
|
7.4%
|
|
Used vehicles ‑
Wholesale
|
3,914
|
2,073
|
88.8%
|
1.9%
|
1.3%
|
Total Used
vehicles
|
39,564
|
36,145
|
9.5%
|
6.4%
|
5.8%
|
Finance, insurance
and other
|
103,311
|
117,634
|
(12.2)%
|
91.5%
|
91.7%
|
Subtotal
|
239,438
|
259,034
|
(7.6)%
|
11.6%
|
11.9%
|
Parts, service and
collision repair
|
162,728
|
166,221
|
(2.1)%
|
53.2%
|
50.6%
|
Total
|
402,166
|
425,255
|
(5.4)%
|
17.0%
|
16.9%
|
The following tables summarizes the results for the three-month
period ended December 31, 2016 on a
same store basis by revenue source and compares these results to
the same period in 2015.
Same Store Revenue
and Vehicles Sold
|
|
|
|
Three Months Ended
December 31
|
(in thousands of
dollars)
|
2016
|
2015
|
%
Change
|
Revenue
Source
|
|
|
|
|
New vehicles ‑
Retail
|
244,096
|
269,056
|
(9.3)%
|
|
New vehicles ‑
Fleet
|
26,656
|
27,764
|
(4.0)%
|
Total New
vehicles
|
270,752
|
296,820
|
(8.8)%
|
|
Used vehicles ‑
Retail
|
93,480
|
109,899
|
(14.9)%
|
|
Used vehicles ‑
Wholesale
|
37,223
|
39,347
|
(5.4)%
|
Total Used
vehicles
|
130,703
|
149,246
|
(12.4)%
|
Finance, insurance
and other
|
27,240
|
28,345
|
(3.9)%
|
Subtotal
|
428,695
|
474,411
|
(9.6)%
|
Parts, service and
collision repair
|
72,273
|
82,311
|
(12.2)%
|
Total
|
500,968
|
556,722
|
(10.0)%
|
|
|
|
|
New retail vehicles
sold
|
5,924
|
6,621
|
(10.5)%
|
New fleet vehicles
sold
|
730
|
1,016
|
(28.1)%
|
Used retail vehicles
sold
|
3,791
|
4,287
|
(11.6)%
|
Total
|
10,445
|
11,924
|
(12.4)%
|
Total vehicles
retailed
|
9,715
|
10,908
|
(10.9)%
|
Same Store Gross
Profit and Gross Profit Percentage
|
|
|
|
Three Months Ended
December 31
|
|
Gross
Profit
|
Gross Profit
%
|
(in thousands of
dollars)
|
2016
|
2015
|
%
Change
|
2016
|
2015
|
Revenue
Source
|
|
|
|
|
|
|
New vehicles ‑
Retail
|
17,844
|
20,947
|
(14.8)%
|
7.3%
|
7.8%
|
|
New vehicles ‑
Fleet
|
2,181
|
1,760
|
23,9%
|
8.2%
|
6.3%
|
Total New
vehicles
|
20,025
|
22,707
|
(11.8)%
|
7.4%
|
7.7%
|
|
Used vehicles ‑
Retail
|
7,404
|
8,090
|
(8.5)%
|
7.9%
|
7.4%
|
|
Used vehicles ‑
Wholesale
|
797
|
814
|
(2.1)%
|
2.1%
|
2.1%
|
Total Used
vehicles
|
8,201
|
8,904
|
(7.9)%
|
6.3%
|
6.0%
|
Finance, insurance
and other
|
25,030
|
26,712
|
(6.3)%
|
91.9%
|
94.2%
|
Subtotal
|
53,256
|
58,323
|
(8.7)%
|
12.4%
|
12.3%
|
Parts, service and
collision repair
|
41,328
|
42,081
|
(1.8)%
|
57.2%
|
51.1%
|
Total
|
94,584
|
100,404
|
(5.8)%
|
18.9%
|
18.0%
|
MD&A and Financial Statements
Information included in this press release is a summary of
results. It should be read in conjunction with AutoCanada's
consolidated financial statements and management's discussion and
analysis for the year ended December 31,
2016, which can be found on the company's website at
www.autocan.ca or on www.sedar.com.
Non-GAAP Measures
This press release contains certain financial measures that do
not have any standardized meaning prescribed by Canadian
GAAP. Therefore, these financial measures may not be
comparable to similar measures presented by other issuers.
Investors are cautioned these measures should not be construed as
an alternative to net earnings (loss) or to cash provided by (used
in) operating, investing, and financing activities determined in
accordance with Canadian GAAP, as indicators of our
performance. We provide these measures to assist investors in
determining our ability to generate earnings and cash provided by
(used in) operating activities and to provide additional
information on how these cash resources are used. The following
"Non-GAAP Measures" are defined in the annual MD&A; EBITDA;
Adjusted EBITDA; Adjusted Net Earnings and Adjusted Net Earnings
per Share; EBIT; Free Cash Flow; Adjusted Free Cash Flow; Adjusted
Average Capital Employed; Absorption Rate; Average Capital
Employed; Return on Capital Employed; and Adjusted Return on
Capital Employed.
Conference Call
A conference call to discuss the results for the year ended
December 31, 2016 will be held on
March 17, 2017 at 11:00am Eastern time (9:00am Mountain time). To participate in
the conference call, please dial 1.888.231.8191 approximately 10
minutes prior to the call. A live and archived audio webcast
of the conference call will also be available at the following:
http://event.on24.com/r.htm?e=1357897&s=1&k=DF1EACF46C59718BE91B332467699E7B
About AutoCanada
AutoCanada is one of Canada's
largest multi-location automobile dealership groups, currently
operating 56 franchised dealerships, comprised of 64 franchises, in
eight provinces and has over 4,250 employees. AutoCanada currently
sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC,
Buick, Cadillac, Infiniti, Nissan,
Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, BMW and MINI
branded vehicles. In 2016, our dealerships sold approximately
60,000 vehicles and processed approximately 864,000 service and
collision repair orders in our 928 service bays.
Dealerships derive their revenue from the following four
inter-related business operations: new vehicle sales; used vehicle
sales; parts, service and collision repair; and finance and
insurance. While new vehicle sales are the most important source of
revenue, they generally result in lower gross profits than parts,
service and collision repair operations and finance and insurance
sales. Overall gross profit margins increase as revenues from
higher margin operations increase relative to revenues from lower
margin operations. The Company earns fees for arranging financing
on new and used vehicle purchases on behalf of third parties. Under
agreements with retail financing sources, the Company is required
to collect and provide accurate financial information, which if not
accurate, may require us to be responsible for the underlying loan
provided to the consumer.
Forward Looking Statements
Certain statements contained in management's discussion and
analysis are forward‑looking statements and information
(collectively "forward‑looking statements"), within the meaning of
the applicable Canadian securities legislation. We hereby provide
cautionary statements identifying important factors that could
cause our actual results to differ materially from those projected
in these forward‑looking statements. Any statements that express,
or involve discussions as to, expectations, beliefs, plans,
objectives, assumptions or future events or performance (often, but
not always, through the use of words or phrases such as "will
likely result", "are expected to", "will continue", "is
anticipated", "projection", "vision", "goals", "objective",
"target", "schedules", "outlook", "anticipate", "expect",
"estimate", "could", "should", "plan", "seek", "may", "intend",
"likely", "will", "believe" and similar expressions are not
historical facts and are forward‑looking and may involve estimates
and assumptions and are subject to risks, uncertainties and other
factors some of which are beyond our control and difficult to
predict. Accordingly, these factors could cause actual results or
outcomes to differ materially from those expressed in the
forward‑looking statements. Therefore, any such forward‑looking
statements are qualified in their entirety by reference to the
factors discussed throughout this document.
The Company's Annual Information Form and other documents filed
with securities regulatory authorities (accessible through the
SEDAR website www.sedar.com describe the risks, material
assumptions and other factors that could influence actual results
and which are incorporated herein by reference.
Further, any forward‑looking statement speaks only as of the
date on which such statement is made, and, except as required by
applicable law, we undertake no obligation to update any
forward‑looking statement to reflect events or circumstances after
the date on which such statement is made or to reflect the
occurrence of unanticipated events. New factors emerge from time to
time, and it is not possible for management to predict all of such
factors and to assess in advance the impact of each such factor on
our business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward‑looking statement.
Additional Information
Additional information about AutoCanada is available at the
Company's website at www.autocan.ca and www.sedar.com.
SOURCE AutoCanada Inc.