EDMONTON, AB, Nov. 19,
2024 /CNW/ - AutoCanada Inc. ("AutoCanada" or the
"Company") (TSX: ACQ) a leader in Canadian automotive retail, today
announced the completion of the sale of Okanagan Chrysler, located
in Kelowna, British Columbia, to
Kot Auto Group. This strategic divestment supports AutoCanada's
focus on enhancing profitability and lowering leverage.
"This sale is part of a series of strategic steps we are taking
to position AutoCanada for future growth," said Paul Antony, Executive Chairman. "By
reallocating resources, we're able to sharpen our focus on core
operations, reduce debt and strengthen profitability."
Financial Highlights
In the twelve months ending September 30,
2024, Okanagan Chrysler retailed 262 new and 437 used light
vehicles, generating sales of $57.2
million. AutoCanada received $10.0
million in cash, excluding net working capital, with
proceeds directed toward reducing the outstanding balance on the
Company's revolving credit facility. This transaction is expected
to be immediately accretive to Adjusted EBITDA margin.
About AutoCanada
AutoCanada is a leading North American multi-location automobile
dealership group currently operating 82 franchised dealerships,
comprised of 28 brands, in eight provinces in Canada as well as a group in Illinois, USA. AutoCanada currently sells
Acura, Alfa Romeo, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge,
FIAT, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Lincoln, Mazda, Mercedes-Benz, MINI, Nissan,
Porsche, Ram, Subaru, Toyota, Volkswagen, and Volvo branded
vehicles. In addition, AutoCanada's Canadian Operations segment
currently operates 3 used vehicle dealerships and 1 used vehicle
auction business supporting the Used Digital Division, 5 RightRide
division locations, and 11 stand-alone collision centres within our
group of 27 collision centres. In 2023, the Company generated
revenue in excess of $6 billion and
our dealerships sold over 100,000 retail vehicles.
Additional Information
Additional information about AutoCanada is available at the
Company's website at www.autocan.ca and www.sedarplus.ca.
Certain statements contained in this press release 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 identified 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. In
particular, this press release contains forward-looking statements
with respect to, among other things, our strategic steps to
position the Company for future growth and the impact of the sale
of Okanagan Chrysler on the Company's leverage, Adjusted EBITDA
margin and earnings per share.
Forward-looking statements are provided to provide
information about management's expectations and plans for the
future and may not be appropriate for other purposes. Forward
looking statements are based on various assumptions, and
expectations that AutoCanada believes are reasonable in the
circumstances. No assurance can be given that these
assumptions and expectations will prove correct. Those assumptions
and expectations are based on information currently available to
AutoCanada and the historic performance of AutoCanada's
businesses.
The forward-looking statements are also subject to the risks
and uncertainties set forth in the Company's Management's
Discussion & Analysis for the three-month period and nine-month
period ended September 30, 2024
("MD&A") under the heading "Risk Factors" and AutoCanada's most
recent Annual Information Form.
SOURCE AutoCanada Inc.
