EDMONTON, May 3, 2018 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX:ACQ), a leading North American multi-location automobile dealership group, today reported its financial results for the three month period ended March 31, 2018.

• Same store Revenue up 4.6% to $562.1 million
• Same store Gross Profit of $95.5 million up 1.0%
• Same store total vehicle sales of 11,407 units up 3.1%

"This was a significant quarter for AutoCanada, completing our largest acquisition in corporate history" said Steven J. Landry, President & Chief Executive Officer. "With the Grossinger Auto Group acquisition, we added over $500 million in annual revenue with a well-established business, gained four new brands and a cluster of dealerships in a major urban market offering a mix of domestic, import and luxury vehicles. It further diversified our geographical weighting while, broadening our mix into a new region. We have now closed the deal and have been working with the teams in Chicago and Bloomington on the integration process. The acquisition moves our dealership count to 68, representing 27 brands."

2018 First Quarter Highlights

• Same store revenue of $562.1 million, up 4.6% in the first quarter of this year from the same period last year. Total revenue of $620.5 million, down 2.9% compared with the first quarter of 2017.
• Same store gross profit was $95.5 million, up 1.0% compared with the same quarter in 2017, with total gross profit of $104.3, down as a percentage of revenue decreasing to 16.8% from 17.5%.
• Same store unit sales and revenue from new vehicle sales were up 3.9% and 4.1%, respectively, year over year. The same-store positive performance was driven by increases in both volume and average revenue per vehicle sold. Total new vehicle sales were 8,140, down 4.3% from the same period in 2017. Total revenue from the sale of new vehicles was $338.0 million, down 4.4% from the same period in 2017. The sale of new vehicles accounted for 54.5% of the Company's total revenue and 22.5% of gross profit versus 55.3% of revenue and 22.9% of gross profit in the first quarter of 2017.
• For same store, unit sales and revenue from used vehicle sales were up 1.9% and 1.1%, respectively, year over year. Total used vehicle sales were 4,527, largely flat compared with the same quarter last year. Total revenue from the sale of used vehicles sales was $157.9 million, down 4.5% from same time last year. The sale of used vehicles accounted for 25.4% of the Company's total revenue and 8.2% of gross profit, versus 25.9% of revenue and 10.7% of gross profit in the first quarter of 2017.
• Same store parts, service and collision repair revenue grew by 11.8%. While the number of service and collision repair orders completed in the quarter declined year over year, the average price of those orders went up, driving an overall increase in revenue for this segment. Total parts, service and collision repair generated $95.9 million of revenue, up 5.7% from same time 2017. This accounted for 15.5% of the Company's total revenue and 43.6% of its gross profit, up from 14.2% of revenue and 42.4% of gross profit in the same quarter of 2017.
• On the same-store basis, revenue from finance and insurance grew by 9.0% and by 6.6% per retail vehicle sold. Total finance and insurance generated $28.7 million of revenue, a decrease of 2.3% from same period in 2017. This accounted for 4.6% of the Company's total revenue and 25.7% of its gross profit, flat from 4.6% of revenue and up from 24.0% of profit in the first quarter of 2017.
• Operating expenses were $95.8 million, down 2.4% from the same period last year. Operating expenses as a percentage of gross profit were up to 91.8% from 87.9% over the same period in 2017.
• EBITDA attributable to AutoCanada shareholders increased by 11.0% to $15.7 million from same time last year.
• The Company generated net earnings attributable to AutoCanada shareholders of $4.8 million ($4.8 million on an adjusted basis), or $0.18 per share ($0.18 adjusted) versus $3.7 million in 2017 ($4.6 million adjusted) or $0.13 per share ($0.17 adjusted).

"Our same store performance was very good, with improvements in every part of the business. The combination of growing the business through acquisitions while improving our operating performance of existing dealerships shows our strategy is working and gives us good reason to be optimistic." said Chris Burrows, Senior Vice-President and Chief Financial Officer.

The following table summarizes the Company's results for the quarter ended March 31, 2018:

Outlook

New vehicle sales in Canada began 2018 at a stronger pace than 2017's record breaking year. While many do not expect that trend to continue throughout 2018 (as March figures showed their first year-over-year decline), the year is expected to be strong by historical standards. The shift to higher margin light trucks and SUVs has also continued, with light trucks accounting for 71.8% of vehicle sales in Canada, thus far in 2018.

First quarter US new vehicle sales are up more than 80,000 units over 2017, as sales were helped by a strong economy with low unemployment and continued OEM incentives. Light trucks accounted for more than two-thirds of vehicle sales in the quarter.

Through a series of recent acquisitions, AutoCanada's regional weighting has shifted outside of Alberta, though the province continues to play an important part in the Company's results.

Subsequent to the first quarter of 2018, the Company closed the previously announced acquisition of the Illinois-based Grossinger Auto Group. This acquisition has added a well-established business to AutoCanada's network and is expected to be accretive to the Company's earnings. It has brought new valuable OEM relationships and broadened AutoCanada's geographical reach and brand diversification through adding a combination of domestic, import and luxury dealerships to its portfolio.

The Company believes its capital allocation strategy and funds, including bank credit agreements in place, are flexible and efficient, and provide enough capacity for operating and capital expenditures, as well as corporate (e.g. acquisitions) purposes for the foreseeable future. 

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 with a goal to efficiently allocate capital to fuel AutoCanada's future growth while also rewarding and sharing the company's success with our shareholders.

On May 3, 2018, the Board declared a quarterly eligible dividend of $0.10 per common share on AutoCanada's outstanding Class A common shares, payable on June 15, 2018 to shareholders of record at the close of business on May 31, 2018.

SELECTED QUARTERLY FINANCIAL 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.

The following tables summarizes the results for the quarter and year ended March 31, 2018 on a same store basis by revenue source and compares these results to the same period in 2017.

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, 2018, 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; Operating profit; EBITDA; Adjusted EBITDA; Adjusted Net Earnings and Adjusted Net Earnings per Share; EBIT; Free Cash Flow; Adjusted Free Cash Flow; Absorption Rate; Average Capital Employed; Adjusted Average Capital Employed; Return on Capital Employed; and Adjusted Return on Capital Employed.

Conference Call

A conference call to discuss the results for the quarter ended March 31, 2018 will be held on May 4 at 6:30am Mountain Time (8:30am Eastern). To participate in the conference call, please dial 1.888.231.8191 (Canada and USA) approximately 10 minutes prior to the call.

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/Q12018/

About AutoCanada

AutoCanada, a leading North American multi-location automobile dealership group currently operating 68 franchised dealerships, comprised of 27 brands, in eight provinces in Canada as well as a group in Illinois, USA and has over 4,200 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, Smart, BMW, MINI, Volvo, Toyota, Lincoln and Honda branded vehicles. In 2017, our dealerships sold approximately 63,000 vehicles and processed approximately 870,000 service and collision repair orders in our 999 service bays generating revenue in excess of C$3 billion.

Forward Looking Statements

Certain statements contained in the MD&A 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", "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 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 www.sedar.com and the Company's website at www.autocan.ca.

SOURCE AutoCanada Inc.