Pat Priestner, Chairman and Chief Executive Officer of AutoCanada
AutoCanada recently announced its first quarter financial results for 2014, which delivered strong results for the group, fueled by robust used car and fixed operations business across its dealership network.
In commenting on the financial results for the three month period ending on March 31, 2014, Pat Priestner, Chairman and Chief Executive Officer of AutoCanada, said that, “we are very pleased with our first quarter operating results. The improved operating results in our used vehicle, parts, service and collision repair departments on a same store basis more than offset what we would consider to be a slightly weaker than expected quarter for new vehicle sales and new vehicle margins. We give credit to our exceptional dealership teams for consistently exceeding the market and the strong performance in all four departments.”
With respect to acquisitions completed during the quarter, Priestner noted that, “we’re very excited about the recent investments in Saskatoon Motors Products and Mann-Northway Auto Source, both located in Saskatchewan, a province in which our company would like to expand. We are also very pleased with the recently announced investment in McNaught Cadillac Buick GMC in Winnipeg, Man., which provides us the opportunity to build upon our ever expanding Winnipeg platform.”
Priestner also remarked that “we are also very excited to have announced the signing of purchase agreements for a dealer group, as well as purchase agreements for additional unrelated dealerships outside of that dealer group. In total, we have signed purchase agreements for eight additional dealerships, which we expect to close by August 1, 2014, subject to manufacturer approval.”
On May 8, the Board declared a quarterly eligible dividend of $0.23 per common share on AutoCanada’s outstanding Class A common shares, payable on June 16, 2014 to shareholders of record at the close of business on May 30, 2014. The quarterly eligible dividend of $0.23 represents an annual dividend rate of $0.92 per share.
In commenting on the increase in dividend, Priestner said that “in keeping with the current dividend strategy and remaining committed to providing shareholders with appropriate dividend growth, the Board has decided to raise the quarterly dividend for the 13th consecutive quarter to $0.23 per share or $0.92 per share on an annualized basis.”
First quarter 2014 highlights include:
- AutoCanada net earnings of $8.3 million or earnings per share of $0.383 (compared with earnings per share of $0.345 in the first quarter of 2013). Pre-tax earnings increased by $2.1 million to $11.2 million in the first quarter of 2014 (compared to $9.1 million in the same period in 2013);
- Same store revenue increased by 13.0% in the first quarter of 2014, compared to the same quarter in 2013. Same store gross profit increased by 8.1% in the first quarter of 2014, compared to the same quarter in 2013;
- Revenue from existing and new dealerships increased 28.2% to $364.3 million in the first quarter of 2014 from $284.1 million in the same quarter in 2013;
- Gross profit from existing and new dealerships increased 24.1% to $63.5 million in the first quarter of 2014 from $51.1 million in the same quarter in 2013;
- EBITDA (Earnings Before Interest Taxes, Depreciation and Amortization) increased 36.8% to $14.5 million in the first quarter of 2014 from $10.6 million in the same quarter in 2013;
- Free cash flow increased to $7.8 million in the first quarter of 2014 or $0.36 per share as compared $5.5 million or $0.28 per share in the first quarter of 2013;
- Adjusted free cash flow increased to $7.3 million in the first quarter of 2014 or $0.34 per share as compared to $5.0 million or $0.25 per share in 2013;
- Adjusted return on capital employed decreased to 4.1% in the first quarter of 2014 as compared to 6.4% in 2013;
- Adjusted return on capital employed on a trailing 12 month basis of 25.1% as compared to 27.6% at March 31, 2013.
