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News Releases
A conference call to discuss the results for the year and three month period ended December 31, 2009 will be held on March 23, 2010 at 10:00 a.m. Eastern time. To participate in the conference call, please dial 1-888-231-8191 or (647) 427-7450 approximately 10 minutes prior to the call. A live and archived audio webcast of the conference call will also be available on the Company's website www.autocan.ca.
EDMONTON, March 22 /CNW/ - AutoCanada Inc. (the "Company" or "AutoCanada") (TSX: ACQ) today announced financial results for the year ended December 31, 2009 and the three month period ended December 31, 2009.
-------------------------------------------------------------------------
2009 Fourth Quarter Operating Results
- Revenue increased 3.6% or $6.6 million
- Gross profit increased by 1.5% or $0.5 million
- Same store revenue increased by 1.3%
- Same store gross profit decreased by 1.1%
- EBITDA was $3.3 million vs. $3.9 million in Q4 of 2008, a 15.4%
decrease Ø The number of new and used vehicles retailed increased by
3.4% Ø Repair orders completed for the quarter were up 10.5%
-------------------------------------------------------------------------
In commenting on the financial results for the three month period ended December 31, 2009, Pat Priestner, Chairman and CEO of AutoCanada Inc. stated that, "We are pleased to see improvements in our sales volumes in the fourth quarter of 2009 when compared to the fourth quarter of 2008. We also experienced an increase in our gross profit which is a great accomplishment for our Company, given the tough market conditions. Although our EBITDA for the quarter was down 15.4%, the Company experienced some one-time expenses relating to dealership relocations and our conversion to a corporate structure that, had they not been incurred, would have allowed us to exceed our EBITDA for the fourth quarter of 2008."
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2009 Annual Operating Results
- Revenue decreased by 6.0% or $49.6 million
- Gross profit decreased by 3.5% or $5.1 million
- Same store revenue decreased by 10.5%.
- Same store gross profit decreased by 7.8%
- EBITDA was $18.4 million vs. $24.5 million in 2008, a 24.7% decrease
- The number of new and used vehicles retailed decreased by 2.9%
- Repair orders completed for the year were up 8.7%
-------------------------------------------------------------------------
In commenting on the financial results for the year ended December 31, 2009, Pat Priestner, Chairman and CEO of AutoCanada Inc. stated that, "Undoubtedly 2009 was one of the most challenging years in retail automotive history in recent memory. Many of these challenges were a direct result of the credit crisis that impacted all sectors of the world economy in 2009. The year was marked by both Chrysler and General Motors filing for bankruptcy in the United States in the spring and then re-emerging from bankruptcy in the summer. One of our long term business partners, Chrysler Financial Canada, exited the automotive business, a decision which left us without a floor plan financing provider at all of our dealerships, and the loss of a significant source of financing for our customers when purchasing new and used vehicles. Through the efforts of management, and much hard work by our new floor plan lender, we successfully replaced Chrysler Financial Canada with a long term partner, General Motors Acceptance Corporation of Canada. In addition, management replaced its Chrysler Financial Canada term financing with term financing from HSBC. Finally, at year end, we successfully converted from an income trust to a corporation, and acquired the two managed Nissan dealerships that were previously included in our financial results as they were considered to be variable interest entities. By any measure, it was a year of uncertainty and challenge. Despite the turmoil that resulted from the all of the above, management is proud of the fact that its team remained intact, and that notwithstanding the challenges, we generated EBITDA of $18.4 million in 2009.
It is management's view that the tight credit markets will continue to impact our business into 2010. In late 2008, the automotive leasing business was significantly reduced as the ability for captive finance companies to securitize asset backed loans was eliminated. The absence of leasing will impact how we do business in the future as consumer lease returns provided significant sales opportunities to dealerships as well as a significant source of nearly new vehicles that could be offered for sale on our used vehicle lots. The credit crisis has also restricted our ability to obtain financing through third parties to facilitate our customers' purchase of vehicles as well as restricted the amount that each customer can finance when purchasing a vehicle. From a financial perspective, this has resulted in a significant drop in our finance and insurance income in 2009 and will most likely continue through-out 2010 until credit conditions return to normal.
Although Chrysler's progress remains not certain, we are pleased that in our major markets there has been continued strong demand for the core product offerings from Chrysler Jeep Dodge namely, Dodge Ram and Dodge Caravan, both of which were redesigned in 2009 and are competitive."
Fourth Quarter 2009 Highlights
- For the fourth quarter of 2009, the Company generated net earnings of
$1.7 million or basic earnings per share of $0.084 and free cash flow
of $0.084 per share.
- Same store revenue increased by 1.3% in the fourth quarter of 2009,
compared to the same quarter in 2008. Same store gross profit
decreased by 1.1% in the fourth quarter of 2009, compared to the same
quarter in 2008.
- Revenue from existing and new dealerships increased 3.6% to $189.0
million in the fourth quarter of 2009 from $182.4 million in the same
quarter in 2008.
- Gross profit from existing and new dealerships increased 1.5% to
$34.1 million in the fourth quarter of 2009 from $33.6 million in the
same quarter in 2008.
- EBITDA decreased 15.4% to $3.3 million in the fourth quarter of 2009
from $3.9 million in the same quarter in 2008.
- On December 7, 2009 the Company completed the transfer of ownership
of Grande Prairie Nissan and Northland Nissan (the "Managed
Dealerships") from CAG (a related party with a 46.8% interest in
AutoCanada) to full ownership by AutoCanada.
- On December 17, 2009, unitholders of AutoCanada Income Fund (the
"Fund") approved the conversion of the Fund into a corporation,
AutoCanada Inc., pursuant to a plan of arrangement ("the Conversion")
involving, among others, the Fund, AutoCanada and securityholders of
the Fund. The conversion was completed on December 31, 2009.
2009 Highlights
- For the year ended December 31, 2009, the Company generated net
earnings of $12.6 million, or basic earnings per share of $0.633 and
free cash flow of $0.353 per share.
- Same store revenue and gross profit decreased by 10.5% and 7.8%
respectively in the year ended December 31, 2009, compared to the
results of the Company to the 2008 year.
- Revenue from existing and new dealerships decreased 6.0% to $776.9
million in the year ended December 31, 2009 from the $826.5 million
that was generated by the Company in 2008.
- Gross profit from existing and new dealerships decreased by 3.5% to
$142.0 million in the year ended December 31, 2009 from the $147.1
million that was generated by the Company in the 2008 year.
- EBITDA decreased 24.7% to $18.4 million for the year ended December
31, 2009 from the $24.5 million that was generated by the Company in
the 2008 year.
- As a result of market conditions, the Company did not complete any
acquisitions during the year ended December 31, 2009.
Distributions / Dividends
Management reviews the Company's financial results on a monthly basis. The Board of Directors reviews the financial results on a quarterly basis, or as requested by Management, and determine whether a dividend shall be paid based on a number of factors.
On February 13, 2009, in view of the continued market unpredictability, general economic deterioration both within the auto industry and generally, rising unemployment, and tight credit markets, the Board of Trustees of the Fund had concluded that it was prudent to reduce monthly distribution from $0.0833 per unit ($1.00 per unit annually) to $0.0417 per unit ($0.50 per unit annually), commencing February 2009, in order to provide additional financial flexibility.
On March 14, 2009, in response to the continued deteriorating retail credit markets and continued economic decline, the Board of Trustees of the Fund determined it would be prudent to temporarily suspend distributions until such time as market conditions stabilize.
The following table summarizes the distributions declared by the Company for the period from January 1, 2009 to December 31, 2009.
(In thousands of dollars)
Exchangeable
Fund Units Units Total
--------------- --------------- --------------
Record date Payment date Declared Paid Declared Paid Declared Paid
$ $ $ $ $ $
January 30, February 16,
2009 2009 881 881 775 775 1,656 1,656
February 27, March 16,
2009 2009 441 441 388 388 829 829
N/A(1) N/A(1) - - - - - -
----------------------------------------------
1,322 1,322 1,163 1,163 2,485 2,485
(1) No further distributions since those disclosed above have been
declared as at the date of this MD&A. No record date or payment date
is applicable.
Distributions were paid on Fund Units and Exchangeable Units. Prior to the conversion to a corporation on December 31, 2009 the following numbers of units were outstanding:
Fund Units 10,573,430
Exchangeable Units 9,307,500
------------
19,880,930
------------
------------
During the year ended December 31, 2009, the Company declared distributions of $0.125 per Fund Unit and Exchangeable Unit to Unitholders. AutoCanada converted to a corporation on December 31, 2009 and as a result, the total number of Class A common shares outstanding at December 31, 2009 was 19,880,930. There are no other classes or types of shares outstanding at December 31, 2009.
SELECTED ANNUAL FINANCIAL INFORMATION
The following table shows the audited results of the Company for the years ended December 31, 2007, December 31, 2008 and December 31, 2009. 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 The Fund The Fund The Company
Operating Data and gross profit %)
(Audited) (Audited) (Audited)
2007 2008 2009
Income Statement Data
Revenue 834,815 826,494 776,933
New vehicles 472,602 451,501 415,750
Used vehicles 224,991 222,329 209,169
Parts, service & collision repair 92,140 103,743 108,383
Finance, insurance & other 45,082 48,921 43,631
Gross profit 138,892 147,052 141,976
New vehicles 32,512 32,706 29,940
Used vehicles 19,685 18,400 19,540
Parts, service & collision repair 44,289 50,358 53,340
Finance, insurance & other 42,406 45,588 39,156
Gross profit % 16.6% 17.8% 18.3%
Sales, general & admin expenses 103,715 114,881 118,141
Floorplan interest expense 9,594 7,065 4,855
Other interest & bank charges 1,250 1,551 2,281
Future income taxes 9,385 (9,970) 449
Net earnings 11,738 (95,175) 12,578
EBITDA(1) 25,077 24,486 18,352
Basic earnings (loss) per share 0.579 (4.711) 0.633
Diluted earnings (loss) per share 0.578 (4.711) 0.633
Operating Data
Vehicles (new and used) sold 23,296 23,714 23,083
New retail vehicles sold 11,135 11,554 11,117
New fleet vehicles sold 2,521 2,244 2,233
Used retail vehicles sold 9,640 9,916 9,733
Number of service & collision
repair orders completed 231,723 277,256 301,282
Absorption rate(2) 98% 96% 89%
No. of dealerships 19 22 22
No. of same store dealerships(3) 11 14 19
No. of service bays at period end 260 284 331
Same store revenue growth(3) 11.3% (9.9)% (10.5)%
Same store gross profit growth(3) 12.1% (2.6)% (7.8)%
(1) EBITDA has been calculated as described under "NON-GAAP MEASURES".
(2) Absorption has been calculated as described under "NON-GAAP
MEASURES".
(3) Same store revenue growth & same store gross profit growth is
calculated using franchised automobile dealerships that we have owned
for at least 2 full years.
SELECTED QUARTERLY FINANCIAL INFORMATION
The following table shows the unaudited results of the AutoCanada 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
Operating Data and gross profit %)
Q1 Q2 Q3 Q4
2008 2008 2008 2008
Income Statement Data
New vehicles 107,688 128,371 118,807 96,634
Used vehicles 55,712 61,223 57,790 47,605
Parts, service & collision
repair 23,536 26,610 26,492 27,105
Finance, insurance & other 11,180 13,121 13,597 11,023
---------------------------------------
Revenue 198,116 229,325 216,686 182,367
---------------------------------------
New vehicles 7,012 9,699 9,266 6,729
Used vehicles 4,393 5,180 5,156 3,671
Parts, service & collision
repair 11,082 12,896 13,290 13,090
Finance, insurance & other 10,579 12,244 12,629 10,137
---------------------------------------
Gross profit 33,066 40,019 40,341 33,627
---------------------------------------
Gross profit % 16.7% 17.5% 18.6% 18.4%
Sales, general & admin expenses 26,317 29,916 30,491 28,157
SG&A exp. as % of gross profit 79.6% 74.8% 75.5% 83.7%
Floorplan interest expense 2,034 1,895 1,693 1,443
Other interest & bank charges 256 396 458 441
Future income taxes 330 148 (1,869) (8,579)
Net earnings(4) 3,358 6,906 (38,318) (67,121)
EBITDA(1)(4) 4,621 8,022 7,975 3,868
Operating Data
Vehicles (new and used) sold 5,552 6,576 6,462 5,124
New retail vehicles sold 2,462 3,471 3,245 2,376
New fleet vehicles sold 716 470 532 526
Used retail vehicles sold 2,374 2,635 2,685 2,222
Number of service & collision
repair orders completed 61,169 72,227 74,300 69,560
Absorption rate(2) 90% 100% 99% 94%
No. of dealerships 19 20 21 22
No. of same store dealerships(3) 13 14 14 14
No. of service bays at period end 260 279 284 288
Same store revenue growth(3) (0.6)% (3.8)% (17.1)% (16.7)%
Same store gross profit growth(3) 0.7% 0.2% (3.3)% (8.0)%
Balance Sheet Data
Cash and cash equivalents 15,298 18,459 19,194 19,592
Accounts receivable 36,411 35,374 39,390 31,195
Inventories 132,549 135,447 134,565 139,948
Revolving floorplan facilities 134,023 131,505 135,562 137,453
Q1 Q2 Q3 Q4
2009 2009 2009 2009
Income Statement Data
New vehicles 87,176 108,181 117,513 102,880
Used vehicles 49,550 55,098 56,386 48,135
Parts, service & collision
repair 26,390 27,322 26,941 27,730
Finance, insurance & other 9,683 11,669 12,027 10,252
---------------------------------------
Revenue 172,799 202,270 212,867 188,997
---------------------------------------
New vehicles 5,828 7,951 9,003 7,157
Used vehicles 3,810 5,677 5,744 4,309
Parts, service & collision
repair 12,811 13,708 13,374 13,447
Finance, insurance & other 8,732 10,489 10,717 9,218
---------------------------------------
Gross profit 31,181 37,825 38,838 34,131
---------------------------------------
Gross profit % 18.0% 18.7% 18.3% 18.1%
Sales, general & admin expenses 27,813 30,450 30,565 29,313
SG&A exp. as % of gross profit 89.2% 80.5% 78.7% 85.9%
Floorplan interest expense 970 1,104 1,399 1,382
Other interest & bank charges 375 552 802 552
Future income taxes 97 67 37 449
Net earnings(4) 1,054 4,750 5,099 1,675
EBITDA(1)(4) 2,230 6,135 6,716 3,271
Operating Data
Vehicles (new and used) sold 5,149 6,067 6,415 5,451
New retail vehicles sold 2,219 3,030 3,236 2,559
New fleet vehicles sold 473 446 619 695
Used retail vehicles sold 2,385 2,591 2,560 2,197
Number of service & collision
repair orders completed 70,021 75,062 79,346 76,853
Absorption rate(2) 84% 90% 92% 91%
No. of dealerships 22 22 22 22
No. of same store dealerships(3) 16 17 18 19
No. of service bays at period end 323 323 321 331
Same store revenue growth(3) (19.8)% (15.3)% (3.9)% 1.3%
Same store gross profit growth(3) (12.8)% (8.7)% (6.3)% (1.1)%
Balance Sheet Data
Cash and cash equivalents 12,522 14,842 23,224 22,465
Accounts receivable 33,821 27,034 38,134 35,388
Inventories 116,478 90,141 107,431 108,324
Revolving floorplan facilities 114,625 73,161 105,254 102,650
(1) EBITDA has been calculated as described under "NON-GAAP MEASURES".
(2) Absorption has been calculated as described under "NON-GAAP
MEASURES".
(3) Same store revenue growth & same store gross profit growth is
calculated using franchised automobile dealerships that we have owned
for at least 2 full years.
(4) The results from operations have been lower in the first and fourth
quarters of each year, largely due to consumer purchasing patterns
during the holiday season, inclement weather and the reduced number
of business days during the holiday season. As a result, our
financial performance is generally not as strong during the first and
fourth quarters than during the other quarters of each fiscal year.
The timing of acquisitions may have also caused substantial
fluctuations in operating results from quarter to quarter.
The following table summarizes the results for the year ended December 31, 2009 on a same store basis by revenue source and compares these results to the same period in 2008.
Same Store Gross Profit and Gross Profit Percentage
-------------------------------------------------------------------------
For the Year Ended
------------------------------------------------------
Gross Profit Gross Profit %
------------------------- ----------------------------
(In thousands of
dollars except
% change and Dec. 31, Dec. 31, % Dec. 31, Dec. 31, %
gross profit %) 2009 2008 Change 2009 2008 Change
-------- -------- -------- -------- -------- --------
Revenue Source
New vehicles 26,478 30,924 (14.4)% 7.2% 7.3% (0.1)%
Used vehicles 18,434 17,996 2.4% 9.4% 8.4% 11.9%
Finance, insurance
and other 36,240 44,346 (18.3)% 92.0% 94.0% (2.1)%
-------- -------- --------
Subtotal 81,152 93,266 (13.0)%
Parts, service and
collision repair 48,863 47,796 2.2% 49.6% 48.6% 2.1%
-------- -------- -------- -------- -------- --------
Total 130,015 141,062 (7.8)% 18.6% 18.0% 3.3%
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
The following table summarizes the results for the three-month period ended December 31, 2009 on a same store basis by revenue source and compares these results to the same period in 2008.
Same Store Gross Profit and Gross Profit Percentage
-------------------------------------------------------------------------
For the Three-Month Period Ended
------------------------------------------------------
Gross Profit Gross Profit %
------------------------- ----------------------------
(In thousands of
dollars except
% change and Dec. 31, Dec. 31, % Dec. 31, Dec. 31, %
gross profit %) 2009 2008 Change 2009 2008 Change
-------- -------- -------- -------- -------- --------
Revenue Source
New vehicles 6,407 6,248 2.5% 7.0% 7.1% (1.4)%
Used vehicles 4,099 3,582 14.4% 9.1% 7.9% 15.2%
Finance, insurance
and other 8,438 9,654 (12.6)% 92.5% 93.4% (1.0)%
-------- -------- -------- -------- -------- --------
Subtotal 18,944 19,484 (2.8)%
Parts, service and
collision repair 12,234 12,031 1.7% 48.9% 48.3% 1.2%
-------- -------- -------- -------- -------- --------
Total 31,178 31,515 (1.1)% 18.3% 18.7% (2.1)%
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
About AutoCanada
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 22 franchised dealerships in British Columbia, Alberta, Manitoba, Ontario, New Brunswick and Nova Scotia. In 2009, the 22 franchised automobile dealerships owned by the Company, sold approximately 23,000 vehicles and processed approximately 300,000 service and collision repair orders in our 331 service bays. We have grown, and intend to continue to grow, our business through the acquisition of franchised automobile dealerships in key markets, the organic growth of our existing dealerships, the opening of new franchised automobile dealerships, or "Open Points", and the management of franchised automobile dealerships.
Our 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 used vehicle sales, 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. We earn fees for arranging financing on new and used vehicle purchases on behalf of third parties and therefore we do not have an in-house lease program and as a result we do not have exposure to residual value risk of returned lease vehicles.
Forward Looking Statements
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 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", "expect", "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.
In particular, material forward-looking statements in this press release include:
- our plans for future growth and effects of future growth on financial
performance;
- the impact of general credit conditions on the Company;
- the impact of the absence of automotive leasing on our business;
- management's anticipation of increased sales opportunities from newly
redesigned vehicles; and
- our assumption on the amount of time it make take for an acquisition
or open point to achieve normal operating results;
The foregoing factors are further discussed in the Company's Annual Information Form dated March 22, 2010 which is filed on SEDAR at www.sedar.com.
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.
NON-GAAP MEASURES
Our 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. We list and define these "NON-GAAP MEASURES" below:
EBITDA
EBITDA is a measure commonly reported and widely used by investors as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric. The Company believes EBITDA assists investors in comparing a company's performance on a consistent basis without regard to depreciation and amortization and asset impairment charges which are non-cash in nature and can vary significantly depending upon accounting methods or non-operating factors such as historical cost. References to "EBITDA" are to earnings before interest expense (other than interest expense on floorplan financing and other interest), income taxes, depreciation, amortization and asset impairment charges.
Free Cash Flow
Free cash flow is a measure used by management to evaluate its performance. While the closest Canadian GAAP measure is cash provided by operating activities, free cash flow is considered relevant because it provides an indication of how much cash generated by operations is available after capital expenditures. It shall be noted that although we consider this measure to be free cash flow, financial and non-financial covenants in our credit facilities and dealer agreements may restrict cash from being available for distributions, re-investment in the Company, potential acquisitions, or other purposes. Investors should be cautioned that free cash flow may not actually be available for growth or distribution of the Company. References to "Free cash flow" are to cash provided by (used in) operating activities (including the net change in non-cash working capital balances) less capital expenditure.
Cautionary Note Regarding Non-GAAP Measures
EBITDA and Free Cash Flow are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Investors are cautioned that these non-GAAP measures should not replace net earnings or loss (as determined in accordance with GAAP) as an indicator of the Company's performance, of its cash flows from operating, investing and financing activities or as a measure of its liquidity and cash flows. The Company's methods of calculating EBITDA and Free Cash Flow may differ from the methods used by other issuers. Therefore, the Company's EBITDA and Free Cash Flow may not be comparable to similar measures presented by other issuers.
Additional information about AutoCanada Inc. is available at the Company's website at www.autocan.ca and www.sedar.com.
AutoCanada Inc.
Consolidated Balance Sheet
As at December 31, 2009
-------------------------------------------------------------------------
(expressed in Canadian dollar thousands)
2009 2008
$ $
ASSETS
Current assets
Cash and cash equivalents 22,465 19,592
Restricted cash - 3,238
Accounts receivable 35,388 31,195
Inventories (note 8) 108,324 139,948
Prepaid expenses 1,649 1,565
Future income taxes (note 20) 500 -
--------- ---------
168,326 195,538
Property & equipment (note 9) 17,794 17,227
Intangible assets (note 10) 43,700 43,700
Future income taxes (note 20) 1,647 585
Leasehold inducements (note 19) 2,142 -
Other assets 56 54
--------- ---------
233,665 257,104
--------- ---------
--------- ---------
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 25,556 21,990
Revolving floorplan facilities (note 12) 102,650 137,453
Distributions payable (note 18) - 1,656
Current portion of long-term debt (note 13) 271 570
Future income taxes (note 20) 2,012 -
--------- ---------
130,489 161,669
Long-term debt (note 13) 23,074 25,522
--------- ---------
153,563 187,191
--------- ---------
Economic dependence (note 3)
Contingencies (note 15)
SHAREHOLDERS' EQUITY
Shareholders' capital (note 16(a)) 190,435 -
Fund Units (note 16(b)) - 101,588
Exchangeable Units (note 16(c)) - 88,847
Contributed surplus (note 17) 3,918 3,822
Deficit (114,251) (124,344)
--------- ---------
80,102 69,913
--------- ---------
233,665 257,104
--------- ---------
--------- ---------
Approved on behalf of the Company:
(Signed) "Gordon R. Barefoot" Director (Signed) "Robin Salmon" Director
AutoCanada Inc.
Consolidated Statement of Operations, Comprehensive Income (Loss) and
Deficit
For the years ended December 31, 2009 and December 31, 2008
-------------------------------------------------------------------------
(expressed in Canadian dollar thousands
except share and per share amounts)
Year ended Year ended
December 31, December 31,
2009 2008
$ $
Revenue
Vehicles 666,850 720,541
Parts, service and collision repair 108,448 103,743
Other 1,635 2,210
---------------------------
776,933 826,494
Cost of sales (note 8) 634,957 679,442
---------------------------
Gross profit 141,976 147,052
---------------------------
Expenses
Selling, general and administrative 118,141 114,881
Interest (note 21) 7,136 8,615
Amortization 3,672 3,319
Asset impairments (notes 10 & 11) - 125,382
---------------------------
128,949 252,197
---------------------------
Earnings (loss) before income taxes 13,027 (105,145)
Future income taxes expense
(recovery) (note 20) 449 (9,970)
---------------------------
Net earnings (loss) & comprehensive
income (loss) for the year 12,578 (95,175)
Deficit, beginning of year (124,344) (8,989)
Distributions declared (note 18) (2,485) (20,180)
---------------------------
Deficit, end of year (114,251) (124,344)
---------------------------
---------------------------
Earnings (loss) per share/unit
Basic 0.633 (4.711)
---------------------------
---------------------------
Diluted 0.633 (4.711)
---------------------------
---------------------------
Weighted average shares/units
Basic 19,880,930 20,201,744
---------------------------
---------------------------
Diluted 19,880,930 20,201,744
---------------------------
---------------------------
AutoCanada Inc.
Consolidated Statement of Cash Flows
For the years ended December 31, 2009 and December 31, 2008
-------------------------------------------------------------------------
(expressed in Canadian dollar thousands)
Year ended Year ended
December 31, December 31,
2009 2008
Cash provided by (used in) $ $
Operating activities
Net earnings (loss) for the period 12,578 (95,175)
Items not affecting cash
Future income taxes expense (recovery)
(note 20) 449 (9,970)
Unit-based compensation (note 17) 96 169
Amortization 3,672 3,319
Loss (gain) on disposal of property
& equipment 308 (1)
Asset impairments (notes 10 & 11) - 125,382
---------------------------
17,103 23,724
Net change in non-cash working capital
balances (5,767) 10,590
---------------------------
11,336 34,314
---------------------------
Investing activities
Business acquisitions (note 7) - (23,705)
Purchase of property & equipment (4,312) (3,938)
Disposal (purchase) of other assets - 24
Payment of leasehold inducements (note 19) (2,142) -
Proceeds on sale of property & equipment 88 117
Restricted cash 3,238 1,118
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(3,128) (26,384)
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Financing activities
Proceeds from long-term debt 20,286 15,496
Repayment of long-term debt (23,136) (750)
Repurchase of Fund Units - (918)
Distributions paid to Unitholders (2,485) (20,180)
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(5,335) (6,352)
---------------------------
Increase in cash 2,873 1,578
Cash and cash equivalents, beginning
of period 19,592 18,014
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Cash and cash equivalents, end of period 22,465 19,592
---------------------------
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Supplementary information
Cash interest paid 7,047 8,775
Transfer of inventory to property & equipment 1,362 1,416
Transfer of property & equipment to inventory 1,140 851
The accompanying notes are an integral part of these consolidated
financial statements.