Q3 2024 AutoCanada Inc Earnings Call Transcript

Nov 13, 2024 / 11:00 PM GMT

Release Date Price: C$15.12 (+3.63%)

Transcript

Key Points

Positve

AutoCanada Inc (AOCIF) has initiated a strategic review of non-core assets, leading to the divestment of two Stellantis dealerships, which allows the company to focus on core areas with greater strategic and financial potential.
The company has partnered with Bain to guide its transformation process, aiming for $100 million in run-rate operational expense savings by the end of 2025.
New vehicle sales increased by 4.5% during the third quarter, indicating some resilience in the new vehicle market.
AutoCanada Inc (AOCIF) has implemented a pause on acquisitions and capital return initiatives to prioritize its transformation plan and enhance profitability.
The company received an amendment to its senior credit facility, providing additional financial flexibility to execute its transformation plan with Bain.

Negative

Total sales for the third quarter were down 1.8% year over year, with adjusted EBITDA down 20% from the previous year.
The Canadian operations reported a 4.7% decline in gross profit, and adjusted EBITDA was down 5.6%.
The U.S. operations faced structural issues, resulting in a 13.2% drop in revenue and a 35.4% decline in gross profit.
Higher flooring costs contributed to the decline in Canadian adjusted EBITDA compared to the previous year.
The company is experiencing lower gross profit per unit and reduced demand for finance and insurance products due to softer market conditions and affordability pressures.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ACQ.TO - AutoCanada Inc
Q3 2024 AutoCanada Inc Earnings Call
Nov 13, 2024 / 11:00PM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for joining Autocanada's conference call to discuss financial assaults for the third quarter of 2024. I'm John, your moderator for today's call. Before we begin. I'd like to remind everyone that today's discussion may include forward-looking statements which are subject to risks and uncertainties. Actual assaults could differ materially from those anticipated in these forward-looking statements.

I encourage you to review Autocanada's filings on Cedar Plus for a discussion of these risks. The third quarter news release financial statements and M DNA, all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session.

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