Edmonton, Alta.-based AutoCanada Inc. recently announced its most profitable quarter in history. The dealer group, which operates 31 auto retail locations in six provinces and has more than 1,500 employees, posted a gross profit of $68.4 million for the quarter, revenues of $388.8 million and pre-tax earnings of $14.8 million. The group also saw same store revenues increase by 26 per cent and same store gross profit climb 25 per cent, compared with the same period last year.
In reference to AutoCanada’s financial performance for the second quarter, which ended June 30, 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, as well as parts, service and collision repair.” Priestner also said that “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 per cent and 25.8 per cent respectively during the quarter.”
With respect to recently announced acquisitions and future growth opportunities, Priestner remarked that, “we are very pleased to be able to further execute our previously announced acquisition strategy by the recent addition of Courtesy Chrysler (Calgary, Alta.) and Eastern Chrysler (Winnipeg, Man).”
Priestner added that, “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, adding to our current dealership footprint of St. James Volkswagen and St. James Audi in the great city of Winnipeg.”
Commenting on the announcement of an increase in its quarterly dividend, 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.”
