AutoCanada Inc. announces most profitable quarter in history
A conference call to discuss the results for the reporting period ended June 30, 2013 will be held on August 9, 2013 at 11:00 a.m. Eastern time (9:00 a.m. Mountain 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 AutoCanada.
EDMONTON--Aug. 8, 2013: AutoCanada Inc. (the "Company" or "AutoCanada") (TSX: ACQ) today announced financial results for the reporting period ended June 30, 2013.
2013 Second Quarter Operating Results
Revenue increased 31.8% or $93.8 million to $388.8 million Gross profit increased by 32.2% or $15.8 million to $64.8 million Same store revenue increased by 26.2% Same store gross profit increased by 25.8% EBITDA was $16.5 million vs. $10.2 million in 2012, a 61.2% increase Pre-tax earnings increased by $5.9 million or 65.8% to $14.8 million Net earnings increased by $4.1 million or 61.2% to $10.8 million Earnings per share increased by 57.4% to $0.532 from $0.338 Same store new vehicles retailed increased by 19.7% Same store used vehicles retailed increased by 4.4% Same store repair orders completed for the quarter were up 10.4% In commenting on the financial results for the three month period ended June 30, 2013, Pat Priestner, Chairman and CEO of AutoCanada Inc. stated that, "We are very pleased with the results of the second quarter of 2013, our most profitable quarter in Company history. The strong growth during the quarter can be attributed to gross profit increases in all four of our business lines - new vehicles, used vehicles, finance and insurance, and parts, service and collision repair. Recent acquisitions have contributed to the increases during the quarter, however much of the growth can be attributed to same store revenue and gross profit increases of 26.2% and 25.8% respectively during the quarter."
With respect to recently announced acquisitions and future growth opportunities, Mr. Priestner further stated, "We are very pleased to be able to further execute our previously announced acquisition strategy by the recent addition of Courtesy Chrysler located in Calgary, Alberta, and the recently announced acquisition of Eastern Chrysler located in Winnipeg, Manitoba. We are strong supporters of Chrysler Canada and look to build upon our excellent relationship with this very important partner, as well, in the case of Eastern Chrysler, of adding to our current dealership footprint of St. James Volkswagen and St. James Audi in the great City of Winnipeg, Manitoba."
Commenting on the announcement of an increase in its quarterly dividend, Mr. Priestner stated, "Our current fundamentals and positive outlook are primary factors in our decision to raise the dividend for the tenth consecutive quarter. Management believes that raising the quarterly dividend to an annual rate of $0.80 per share shall continue to provide an attractive yield to investors and will continue to attract investors who seek a combination of both growth opportunity and a regular income stream."
Second Quarter 2013 Highlights
The Company generated net earnings of $10.8 million or earnings per share of $0.532 versus earnings per share of $0.338 in the second quarter of 2012. Pre-tax earnings increased by $5.9 million to $14.8 million in the second quarter of 2013 as compared to $8.9 million in the same period in 2012. Same store revenue increased by 26.2% in the second quarter of 2013, compared to the same quarter in 2012. Same store gross profit increased by 25.8% in the second quarter of 2013, compared to the same quarter in 2012. Revenue from existing and new dealerships increased 31.8% to $388.8 million in the second quarter of 2013 from $294.9 million in the same quarter in 2012. Gross profit from existing and new dealerships increased 32.2% to $64.8 million in the second quarter of 2013 from $49.1 million in the same quarter in 2012. EBITDA increased 61.2% to $16.5 million in the second quarter of 2013 from $10.2 million in the same quarter in 2012. Free cash flow increased to $13.5 million in the second quarter of 2013 or $0.66 per share as compared $6.2 million or $0.31 per share in the second quarter of 2012. Adjusted free cash flow increased to $13.4 million in the second quarter of 2013 or $0.66 per share as compared to $9.2 million or $0.47 per share in 2012. Adjusted return on capital employed increased to 9.0% in the second quarter of 2013 as compared to 7.3% in 2012. Adjusted return on capital employed on a trailing 12 month basis of 29.4% as compared to 22.2% at June 30, 2012.
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.
The following table summarizes the dividends declared by the Company in 2013: (In thousands of dollars) Total Record date Payment date Declared Paid $ $ February 28, 2013 May 31, 2013 March 15, 2013 June 17, 2013 3,579 3,777 3,579 3,777
On August 8, 2013, the Board declared a quarterly eligible dividend of $0.20 per common share on AutoCanada's outstanding Class A common shares, payable on September 16, 2013 to shareholders of record at the close of business on August 30, 2013. The quarterly eligible dividend of $0.20 represents an annual dividend rate of $0.80 per share.