EDMONTON, AB, June 3, 2020
/CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ),
a multi-location North American automobile dealership group, today
reported its financial results for the three month period ended
March 31, 2020.
"In response to the COVID-19 situation, we took immediate and
proactive steps to ensure the well-being and safety of our
employees and customers and the continuity of our operations. We
implemented cost and cash spending reduction measures and have
worked closely with our various stakeholders to limit the impact on
the Company's liquidity. Our recent refinancing of the credit
facility and debentures also substantially strengthened our balance
sheet heading into the COVID-19 pandemic," said Paul Antony, Executive Chairman of
AutoCanada.
"In the near-term, our primary focus is to protect cash and
liquidity while continuing to safely adapt our operations according
to various government guidelines. Our strategy for the long term
remains intact as we believe we will regain the positive momentum
from our Go Forward Plan over the past several quarters and emerge
from this downturn even stronger and nimbler," concluded Mr.
Antony.
2020 First Quarter Key Highlights and Recent
Developments
All comparisons presented below are between the three-month
period ended March 31, 2020 and the three-month period ended
March 31, 2019, unless otherwise indicated.
Executive Overview
The Company continued to realize ongoing traction and momentum
across its complete business model through the end of February 2020, recording strong year-over-year
dealership gains. However, the effect of the COVID-19 pandemic
materially and negatively impacted results for the last half of
March and more than offset the positive performance to that
point.
Our immediate priorities at the outset of the COVID-19 pandemic
included focusing on the safety of our people and customers, and
ensuring we followed all government requirements to safely address
the pandemic. Operationally, the Company realized a dramatic
reduction in revenues and unit sales in the last two weeks of the
quarter as a result of the developing pandemic crisis. During this
time, management developed and staged an action plan to both
mitigate losses and protect cash and liquidity. Cost reduction
actions included employee layoffs, aggressive expense management
and deferral of all discretionary costs. Cash management actions
included an amendment to our syndicated credit facility (the
"Credit Facility") providing covenant relief through June 30, 2021, the suspension of our dividend,
and the deferral of capital spending that roughly halved our
annualized break even cash flow to approximately $30 million. These actions provide us with ample
liquidity and full access to the $175
million revolving facility in our Credit Facility.
While these measures were taken with an eye towards managing a
range of COVID-19 impacts to date and combined with the effect of
these measures, we are seeing a more moderate than initially
expected impact from COVID-19 in our second quarter performance. We
have experienced steady improvements in revenue and profitability
since the end of March 2020, as
restrictions begin to ease, and our business model adapts to the
new 'normal'. Notably, Canadian new and used retail sales
progressively improved from a decrease of (54)% for the last two
weeks of March to a decrease of (49)% for the month of April to a
decrease of (16)% for the month of May (all months on a
year-over-year basis), reflecting a substantially stronger positive
trend from the previous 6 weeks.
Despite the market conditions in Q1 2020, the Company continued
to outperform the Canadian market. Consolidated revenues of
$708.8 million in Q1 reflected a
reduction of (4.1)% over the prior year while same store new retail
unit sales decreased by (16.9)% as compared to the Canadian market
decrease of (18.7)%, for brands represented by AutoCanada, as
reported by DesRosiers Automotive Consultants. The effects of
COVID-19 on revenues in the last half of March (typically a
seasonally stronger month than January and February) drove Adjusted
EBITDA to $5.7 million, down
$(5.8) million from the prior year.
Net indebtedness (total indebtedness less cash and cash equivalents
on hand) increased by $12.1 million
from $157.9 million at the end of Q4
2019 to $170.0 million at the end of
Q1 2020. As of May 31, 2020, the
Company had reduced its overall net indebtedness by approximately
$(20) million, to $150 million.
The Company completed both the refinancing of its senior
unsecured debentures and the renewal of its syndicated credit
facility in February 2020,
substantively improving the Company's credit profile and financial
flexibility, and enhancing the average tenor of our overall debt
profile as of March 31, 2020 from approximately 13 months to
approximately 4 years. As a result, the Company entered this
COVID-19 pandemic environment with the strongest balance sheet in
recent history.
Consolidated AutoCanada Highlights
COVID-19 NEGATIVELY IMPACTS QUARTER
For the first two months of 2020, our performance improved
compared to the prior year, as evidenced by an increase in total
retail vehicles sold of 2%. In March, the positive traction and
momentum was negatively impacted by the effects of COVID-19.
For the three-month period ended March 31, 2020:
- Revenue was $708.8 million, a
decrease of $(30.5) million or
(4.1)%
- Total vehicles sold were 13,735, a decrease of (2,008) units or
(12.8)%
- A total impairment charge of $(31.5)
million is comprised of $(22.7)
million impairment of the Canadian operating segment and
$(8.9) million related to the U.S
operating segment. The impairment charge was recognized as a result
of indicators and market conditions arising from the potential
future impacts of COVID-19.
- Net income (loss) for the period was $(46.9) million (or $(1.70) per diluted share) versus $(2.7) million (or $(0.10) per diluted share).
- Adjusted EBITDA decreased by (50.3)% to $5.7 million, a decrease of $(5.8) million.
- Ending net indebtedness was $170.0
million; based on cash and cash equivalents and availability
on our Credit Facility, our liquidity was $125 million.
Canadian Operations Highlights
FOR THE FIFTH CONSECUTIVE QUARTER,
OUTPERFORMED CANADIAN NEW RETAIL MARKET
Management continued to execute its complete business model
during the quarter. Prior to the impacts of COVID-19, earnings
performance was driven by a combination of strong new and used unit
growth, our F&I initiative, and our focus on improving used
retail vehicle sales. For the fifth consecutive quarter, we
outperformed the Canadian market, as same store new retail unit
sales decreased by (16.9)% as compared to the market decrease of
(18.7)%, for brands represented by AutoCanada, as reported by
DesRosiers Automotive Consultants. Sales and gross profit
performance was supported by our focus on OEM relationships, which
includes achieving sales unit and customer satisfaction targets and
our ongoing focus on our complete business model. Our F&I
initiative helped increase gross profit per retail unit average to
$2,679, an increase of 16.5%
year-over-year. Our used to new retail units increased to 1.08 from
0.85 in the prior year.
For the first two months of 2020, Canadian revenue increased by
approximately 14% and total retail vehicles sold increased by
6%. However, towards the end of Q1 2020, the impact of
COVID-19 resulted in a slow-down in the Canadian market as business
shut-down orders were implemented across provinces and cities.
Historically, March accounts for approximately double of the first
two months of Q1 performance. The approximate two-week impact of
COVID-19 in March was the primary driver of the decline noted in
the Q1 2020 results.
- Revenue was $626.6 million, a
reduction of (1.4)%
- Total retail vehicles sold were 10,955, a decrease of (1,297)
units or (10.6)%
-
- Same store new and used retail unit sales decreased by (7.8)%
to 10,438
-
- Same store used retail unit sales increased by 2.4%
- Used to new retail units ratio increased to 1.08 from 0.85, an
increase of 27.2%
- Net (loss) income for the period was $(32.6) million, down (613.4)% from a net income
of $6.4 million in 2019. 2020 results
included impairment charges of $(22.7)
million.
- Adjusted EBITDA decreased (48.8)% to $8.7 million, a decrease of $(8.3) million.
-
- Included in these results was a $2.3
million foreign exchange loss to eliminate all forward
contract exposure associated with the cross-border wholesale
division at quarter end.
U.S. Operations Highlights
U.S. CONTINUES TO DEMONSTRATE MARKED AEBITDA
IMPROVEMENT DESPITE COVID-19
The U.S. Operations segment continued to see improvements when
compared to the prior year, including full quarter growth in
revenue and Adjusted EBITDA despite COVID-19. Time in position for
the new management team has positively impacted the progress of
operational performance. Management's focus on profitability by
ensuring vehicle profits are not sacrificed in the pursuit of
vehicle unit sales and continued improvements to the expense
structure, despite the Company ceasing operations of two U.S.
franchises on November 11, 2019, has
resulted in an improvement in Adjusted EBITDA to $(3.0) million, as compared to $(5.5) million in the prior year.
- Revenue was $82.2 million, a
decrease of (20.9)%
- Retail unit sales decreased to 1,743 , down (684) units or
(28.2)%
- Net (loss) income for the period was $(14.2) million versus $(9.0) million in 2019. Current period results
included impairment charges of $8.9
million
- Adjusted EBITDA was $(3.0)
million, an increase of $2.5
million from 2019
Same Store Metrics
SAME STORE USED RETAIL UNIT SALES GROWTH
OF 2.4%
Total same store new and used retail unit sales for Canadian
Operations decreased by (7.8)% to 10,438, with new retail
units showing a decrease of (16.9)% and used retail units showing
an increase of 2.4%. Despite the impact of COVID-19, the Company
continues to strengthen and build on our complete business model,
inclusive of the Finance and Insurance department growth, as
demonstrated by the increase in average F&I gross profit per
retail unit of $321 per unit compared
to the prior year. The decrease of new retail units by (16.9)%
outperformed the market decrease of (18.7)% in the Canadian new
vehicle market for the brands represented by AutoCanada, as
reported by DesRosiers Automotive Consultants. The same stores
metric includes only Canadian dealerships which have been owned for
at least two full years since acquisition.
- Revenue increased to $579.4
million, an increase of 0.8%
- Gross profit decreased by $(2.2)
million or (2.1)%
- Used to new retail units ratio increased to 1.10 from 0.89
- Finance and insurance gross profit per retail unit average
increased to $2,614, up 14.0% or
$321 per unit; gross profit increased
to $27.3 million as compared to
$26.0 million in the prior year
- Parts, service and collision repair gross profit decreased to
$41.4 million, a decrease of
(6.4)%
Financing and Investing Activities and Other Recent
Developments
AMENDMENT EXECUTED EXTENDING COVENANT RELIEF
TO JUNE 30, 2021
The Company completed the following financing transactions on
February 11, 2020:
- Entered into an amended and restated $950 million Credit Facility, with a maturity
date of February 11, 2023
- Issued $125 million of 8.75%
senior unsecured notes due February 11,
2025, with the proceeds used to refinance the senior notes
due May 25, 2021
The transactions improved the overall credit profile of the
Company, increasing the average tenor as of March 31, 2020 of
long-term debt from approximately 13 months to approximately 4
years. As at March 31, 2020, based on
cash and cash equivalents and availability on our Credit Facility,
our liquidity was $125 million.
In response to the impacts of COVID-19, management has taken the
following financial resilience measures to manage liquidity for the
next twelve months:
- Executed Credit Facility amendment dated April 20, 2020 that extends covenant relief to
June 30, 2021
-
- Includes replacement of Q2 2020 results with Q2 2019 results
for covenant calculation purposes
- Suspension of the quarterly $0.10
dividend
- Reduction in budgeted capital expenditures to approximately
$12 million for the year
Our immediate focus has been on preserving cash and managing
liquidity. As of May 31, 2020, we
have reduced our net indebtedness by approximately $(20) million, to $150
million, from $170
million as at March 31, 2020. By
replacing Q2 2020 financial results with Q2 2019 financial results
for covenant calculation purposes, we have addressed covenant risks
brought on by COVID-19.
Q2 2020 To Date Update
Based on current trending information, as noted previously, the
impacts of COVID-19 on our business model have been more moderate
than initially expected. We entered Q2 2020 well prepared as a
result of management's actions taken to date, continued refinement
of our business model, and successful actioning of various
initiatives.
The graph below visualizes the impact COVID-19 had on our
Canadian year-to-date retail unit results. More importantly, the
graph supports the efficacy of our business model with the
resulting year-over-year improvements from the prior year in
January and February and trending improvements in May 2020.
Canadian Retail Vehicle Unit Count YoY% Change
COVID-19 Response
Actions Taken in Response to COVID-19
Since the outset of COVID-19, the Company has carefully followed
the most current direction of government and related health
agencies in our policies and procedures across our operations. To
that end, we continue to implement stringent operating practices to
ensure personal protection, cleanliness, distancing, overall
employee and customer safety, work from home protocols wherever
possible, halting all non-essential travel, and following
established guidelines in the event an infected employee is
identified.
The Company continues to operate in accordance with local
government orders regarding the operation of non-essential
businesses due to COVID-19. From mid-March to mid-May, AutoCanada
was providing service operations and limited sales in New Brunswick, Ontario, and Illinois, only service operations in
Quebec, and full operations in the
balance of Canada. Currently, in
conjunction with the re-opening of the market and staged easing of
restrictions, AutoCanada's Canadian dealerships are now fully
operational and U.S. dealerships continue to provide service
operations and sales by appointment only. We continue to monitor
and ensure our operations comply with all restrictions.
Across all our operations, AutoCanada will continue to safely
support customers with their vehicle servicing and purchasing
requirements, and customers are encouraged to contact their local
dealership as needed.
Combined with the measures taken as identified below, and the
Company's comprehensive business model, management believes the
Company to be well-positioned to operate within the COVID-19
environment. We continue to be mindful of the potential impacts of
COVID-19 over the coming months and will remain focused on managing
cash and liquidity.
Financial Resilience Measures Taken
In the near-term, our main priority is to manage our liquidity
and ensure we remain adaptable and resilient through the coming
quarters. The Company has taken measures to enhance financial
resilience in response to the evolving market conditions due to
COVID-19. These measures are designed to address immediate
challenges, while reinforcing the balance sheet given the pandemic
is expected to continue for an unknown period of time.
Key cash management actions taken include an amendment to our
Credit Facility that provided covenant relief through June 30, 2021, the suspension of our dividend,
and the deferral of capital spending that roughly halved our
annualized break even cash flow to approximately $30 million. These actions provide us with ample
liquidity and full access to the $175
million revolving facility in our Credit Facility.
Amendment to our Credit Facility
The Company has
amended its Credit Facility, effective April
20, 2020, to provide additional covenant headroom through to
the end of Q2 2021. AutoCanada received staged covenant relief
thresholds for the Total and Senior Net Funded Debt to Bank EBITDA
and Fixed Charge Coverage Ratios through to Q2 2021. Effective
July 1, 2021, or earlier at the
Company's discretion, all covenant thresholds revert to their prior
levels.
The amendment also provides additional covenant relief as the
Company will be replacing Q2 2020 results impacted by COVID-19 with
Q2 2019 results when calculating Q2 2020 Bank Adjusted EBITDA.
Management is actively managing the risks of COVID-19 on financial
covenants by both replacing Q2 2020 results and obtaining the
staged covenant relief thresholds through to June 30, 2021.
In addition, the amendment provides for a suspension of
curtailment payments under the floorplan facility through the end
of June 2020 and an extension of
repayments in respect of export vehicles.
Overview of Cost Management and Other Actions
The Company has taken the following additional actions to manage
through the COVID-19 situation, with a focus on preserving cash and
maintaining financial flexibility throughout this period of
uncertainty.
- Employee Layoffs and Compensation
At the peak of the
COVID-19 situation, the Company had laid off approximately 1,700,
or 40%, of AutoCanada's workforce. Management is actively managing
the business model and will continue to adjust based on changing
business conditions.
In addition, the Company will realize the benefit of reduced
compensation expenses associated with our variable cost
structure.
- Discretionary Vendor and Landlord Expenses
The
Company has deferred, reduced, or eliminated most discretionary and
non-essential operational and administrative spending. Advertising
costs account for a large portion of these expenses. In addition,
management continues to work with several vendors and landlords to
reduce costs through this period and/or defer payments on goods,
services, and rent beyond the second quarter of 2020. Management
anticipates positive cash and Adjusted EBITDA impacts from these
initiatives.
- Capital Expenditures
The Company has reduced its capital spending to a minimum and
expects to incur approximately $12
million for the year. As a reference point, total annual
growth capital expenditures have averaged $29 million over the last two years.
- Suspension of Dividend
The Board of Directors of the Company has suspended the quarterly
dividend until further notice. We believe this is a prudent
decision to strengthen the Company's balance sheet until the full
economic consequences of COVID-19 are better understood. This
temporary suspension of our dividend represents approximately
$11 million in annualized cash
savings and approximately $8 million
for the balance of 2020. The Company intends to reinstate a
dividend in the future when a greater degree of visibility and
normalcy returns.
- Non-Core Asset Portfolio
The Company continues to liquidate its portfolio of non-core
assets, valued at $13.1 million as at
March 31, 2020. During the first
quarter of 2020, the Company realized proceeds of $1.1 million on the sale of one of these
properties.
- Government Programs and Subsidies
The Company has been monitoring our eligibility for various
government assistance programs available in response to the effects
of COVID-19. We anticipate receiving assistance from the following
government programs in Q2 2020:
Canada
- Canada Emergency Wage Subsidy
("CEWS"): Passed on April 11, 2020,
the CEWS provides support to employers facing financial hardship as
measured by certain revenue declines resulting from the COVID-19
pandemic. The CEWS provides a reimbursement of 75% of employee
wages, to a maximum weekly benefit of $847 per employee, subject to meeting certain
criteria. This subsidy is available for up to 24 weeks, from
March 15, 2020 to August 29, 2020. We have applied for the CEWS for
the period from March 15 to April 11,
2020 in the amount of $6.8
million. Additionally, we have qualified for the CEWS for
the period from April 12 to June 6,
2020 and expect to receive approximately $10.0 million. We will assess our eligibility for
the remaining 12 week period of the program (June 7 to August 29, 2020) in accordance with the
relevant program requirements.
- Deferral of corporate income tax installments.
- Deferral of GST, HST and PST remittances and customs duty
payments.
- Deferral of property tax, workers compensation premiums and
other payments.
U.S.
- In April 2020, our U.S.
dealerships received approximately $5.4
million (USD) in loans, with potential for partial
forgiveness, under the Paycheck Protection Program implemented by
the Small Business Administration. This program provides businesses
with funds to pay up to eight weeks of payroll costs including
benefits, as well as mortgage interest, rent and utilities.
Management anticipates that the majority of the government
assistance programs will be non-recurring financial support
isolated to Q2 2020, unless otherwise extended, as noted for the
CEWS.
- Board, Executive and Employee Compensation
The
Company's Executive Chairman and the Board of Directors voluntarily
accepted a 50% reduction to their salary and fees respectively for
Q2 2020. In addition, the Company's executive management team
voluntarily accepted a 25% reduction to their base salaries for Q2
2020.
The Company has also deferred all salary increases until further
notice.
- Actions Related to Hedging
The Company took a charge
of $2.3 million to Adjusted EBITDA in
Q1 2020 to eliminate all forward contract exposure associated with
the cross-border wholesale division. This was done to mitigate the
further risk of currency fluctuations impacting available cash,
particularly during a period of limited cross-border activity.
The Company has successfully restructured nearly one-third of its
interest rate swap portfolio which was established in late 2018 and
early 2019. As of March 31, 2020,
subject to further interest rate fluctuation, this action was
expected to drive cash savings to the Company of approximately
$2.0 million over the next twelve
months.
COVID-19 Operating Impacts to Business Objectives and
Strategy
Our business model continues to operate well, and we are
leveraging traction from the success of the Go Forward Plan
initiatives to manage impacts from COVID-19. Based on currently
available information, we have created a detailed plan to ensure we
successfully weather the pandemic, while also improving and
strengthening our business model to best address the ever-changing
market conditions. This includes actively managing headcount,
continued focus on used retail sales, leveraging our Business
Development Centre ("BDC") to drive parts, service, collision
repair ("PS&CR"), and ensuring pay plan programs align with
changing market conditions to drive greater consistency across
platforms and better alignment with operating targets.
Management is actively assessing what the "new normal" will be.
Despite the market beginning to re-open in varying stages across
Canada and U.S., we are aware that
consumer uncertainty in our markets will likely create a lag in the
anticipated recovery. We will continue to respond according to
market conditions as they evolve.
The Company intends to emerge from this unprecedented event as a
stronger and more efficient operating unit.
First Quarter Financial Information
The following
table summarizes the Company's performance for the quarter:
|
|
|
Three Months Ended
March 31
|
Consolidated
Operational Data
|
2020
|
2019
|
%
Change
|
Revenue
|
708,826
|
739,371
|
(4.1)%
|
Gross
profit
|
117,298
|
126,699
|
(7.4)%
|
Gross profit
%
|
16.5%
|
17.1%
|
(0.6)%
|
Operating
expenses
|
116,700
|
121,666
|
(4.1)%
|
Operating (loss)
profit
|
(28,948)
|
13,471
|
(314.9)%
|
Net (loss) for the
period
|
(46,853)
|
(2,671)
|
1654.1%
|
Basic net (loss) per
share attributable to AutoCanada shareholders
|
(1.70)
|
(0.10)
|
1600.0%
|
Adjusted EBITDA
1
|
5,739
|
11,549
|
(50.3)%
|
|
|
|
|
New retail vehicles
sold (units)
|
6,289
|
8,162
|
(22.9)%
|
New fleet vehicles
sold (units)
|
1,037
|
1,064
|
(2.5)%
|
Total new vehicles
sold (units)
|
7,326
|
9,226
|
(20.6)%
|
Used retail vehicles
sold (units)
|
6,409
|
6,517
|
(1.7)%
|
Total vehicles
sold
|
13,735
|
15,743
|
(12.8)%
|
Same store new retail
vehicles sold (units)
|
4,980
|
5,995
|
(16.9)%
|
Same store new fleet
vehicles sold (units)
|
1,011
|
929
|
8.8%
|
Same store used
retail vehicles sold (units)
|
5,458
|
5,329
|
2.4%
|
Same store total
vehicles sold
|
11,449
|
12,253
|
(6.6)%
|
Same store
revenue
|
579,369
|
574,728
|
0.8%
|
Same store gross
profit
|
101,922
|
104,103
|
(2.1)%
|
Same store gross
profit %
|
17.6%
|
18.1%
|
(0.5)%
|
See the Company's
Management's Discussion and Analysis for the quarter ended
March 31, 2020 for complete footnote
disclosures.
|
The following table shows the segmented operating results for
the Company for the three month periods ended March 31, 2020
and March 31, 2019.
|
|
|
|
|
Three Months
Ended
March 31, 2020
|
|
Three Months
Ended
March 31, 2019
|
|
Canada
$
|
|
U.S.
$
|
|
Total
$
|
|
Canada
$
|
|
U.S.
$
|
|
Total
$
|
New
vehicles
|
300,446
|
|
41,136
|
|
341,582
|
|
340,161
|
|
58,822
|
|
398,983
|
Used
vehicles
|
204,063
|
|
25,292
|
|
229,355
|
|
164,061
|
|
24,558
|
|
188,619
|
Parts, service and
collision repair
|
90,359
|
|
12,094
|
|
102,453
|
|
100,739
|
|
16,163
|
|
116,902
|
Finance, insurance
and other
|
31,746
|
|
3,690
|
|
35,436
|
|
30,476
|
|
4,391
|
|
34,867
|
Total
revenue
|
626,614
|
|
82,212
|
|
708,826
|
|
635,437
|
|
103,934
|
|
739,371
|
New
vehicles
|
24,121
|
|
146
|
|
24,267
|
|
27,667
|
|
(140)
|
|
27,527
|
Used
vehicles
|
9,123
|
|
1,050
|
|
10,173
|
|
10,068
|
|
1,044
|
|
11,112
|
Parts, service and
collision repair
|
43,526
|
|
6,443
|
|
49,969
|
|
47,052
|
|
8,692
|
|
55,744
|
Finance, insurance
and other
|
29,352
|
|
3,537
|
|
32,889
|
|
28,180
|
|
4,136
|
|
32,316
|
Total gross
profit
|
106,122
|
|
11,176
|
|
117,298
|
|
112,967
|
|
13,732
|
|
126,699
|
Employee
costs
|
58,732
|
|
7,760
|
|
66,492
|
|
58,844
|
|
10,590
|
|
69,434
|
Administrative costs
2
|
32,966
|
|
6,410
|
|
39,376
|
|
33,175
|
|
7,835
|
|
41,010
|
Facility lease and
storage costs 2
|
237
|
|
—
|
|
237
|
|
380
|
|
547
|
|
927
|
Depreciation of
property and equipment
|
4,098
|
|
289
|
|
4,387
|
|
4,472
|
|
442
|
|
4,914
|
Depreciation of
right-of-use assets 2, 3
|
5,626
|
|
582
|
|
6,208
|
|
4,820
|
|
561
|
|
5,381
|
Total operating
expenses 2, 3
|
101,659
|
|
15,041
|
|
116,700
|
|
101,691
|
|
19,975
|
|
121,666
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss) before other income 2, 3
|
4,463
|
|
(3,865)
|
|
598
|
|
11,276
|
|
(6,243)
|
|
5,033
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
data
|
|
|
|
|
|
|
|
|
|
|
|
New retail vehicles
sold 1, 4
|
5,274
|
|
1,015
|
|
6,289
|
|
6,635
|
|
1,527
|
|
8,162
|
New fleet vehicles
sold 1
|
1,037
|
|
—
|
|
1,037
|
|
1,059
|
|
5
|
|
1,064
|
Total new vehicles
sold 1, 4
|
6,311
|
|
1,015
|
|
7,326
|
|
7,694
|
|
1,532
|
|
9,226
|
Used retail vehicles
sold 1, 4
|
5,681
|
|
728
|
|
6,409
|
|
5,617
|
|
900
|
|
6,517
|
Total vehicles sold
1, 4
|
11,992
|
|
1,743
|
|
13,735
|
|
13,311
|
|
2,432
|
|
15,743
|
# of service and
collision repair orders completed 1
|
150,238
|
|
27,989
|
|
178,227
|
|
174,482
|
|
39,190
|
|
213,672
|
# of dealerships at
period end
|
50
|
|
13
|
|
63
|
|
52
|
|
14
|
|
66
|
# of service bays at
period end
|
867
|
|
177
|
|
1,044
|
|
913
|
|
200
|
|
1,113
|
|
See the Company's
Management's Discussion and Analysis for the quarter ended
March 31, 2020 for complete footnote
disclosures.
|
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 quarter ended March 31, 2020, 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: Adjusted
EBITDA; Free Cash Flow; Average Capital Employed; Return on Capital
Employed; Net Indebtedness and Lease Adjusted Leverage Ratio.
Conference Call
A conference call to discuss the results for the three months
ended March 31, 2020 will be held on June 4, 2020 at
9:00am Mountain (11:00am Eastern). To participate in the
conference call, please dial 1.888.231.8191 approximately 10
minutes prior to the call.
AutoCanada's presentation that will be discussed on the
conference call is available at the Company's website at
www.autocan.ca.
This conference call will also be webcast live over the internet
and can be accessed by all interested parties at the following URL:
https://www.autocan.ca/investors/q12020-presentation
About AutoCanada
AutoCanada is a leading North American multi-location automobile
dealership group currently operating 63 franchised dealerships,
comprised of 26 brands, in eight provinces in Canada as well as a group in Illinois, USA. AutoCanada currently sells
Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC,
Buick, Cadillac, Ford, Infiniti,
Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda,
Mercedes-Benz, Smart, BMW, MINI, Volvo, Toyota, Lincoln, and Honda branded vehicles. In 2019,
our dealerships sold approximately 71,000 vehicles and processed
approximately 900,000 service and collision repair orders in our
1,047 service bays generating revenue in excess of $3 billion.
Additional information about AutoCanada Inc. is available
at www.sedar.com and the Company's website
at www.autocan.ca.
Forward Looking Statements
Certain statements contained in this press release are
forward-looking statements and information (collectively
"forward-looking statements", including "with respect to", "among
other things", "future performance", "expense reductions" and the
"Go Forward Plan"), 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", "shall" 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 press release.
The Company's Annual Information Form and other documents filed
with securities regulatory authorities (accessible through the
SEDAR website at 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.