Automotive retail group AutoCanada Inc. has announced financial results both for its fourth quarter of 2013 and the year overall.
Key highlights of last year’s annual operating results included an increase of of 27.9 per cent in revenue ($307.1 million to $1.4 billion); an increase of 17.2 per cent in same store revenue and 17.5 per cent in same store profit; a 57.5 per cent increase in net earnings (from $24.2 to $38.2 million), a 26.5 and 9.7 per cent increase in new and used vehicle retail sales respectively, plus a 17.7 per cent increase in repair orders completed in stores across the group.
Fourth quarter results from last year also revealed the following:
- Same store revenue increased by 8.9 per cent, compared to the same quarter in 2012. Same store gross profit increased by 9.2 per cent during the same period;
- Revenue from existing and new dealerships increased 27.8 per cent to $333.8 million (up from $261.1 million during the same quarter in 2012);
- Gross profit from existing and new dealerships increased 28.9 per cent to $62.3 million in the fourth quarter of 2013 from $48.4 million in the same quarter in 2012;
- EBITDA increased 43.3 per cent to $14.8 million in the fourth quarter of 2013 from $10.3 million in the same quarter in 2012;
- Free cash flow increased to $8.4 million in the fourth quarter of 2013 or $0.39 per share as compared to $0.9 million or $0.05 per share in the fourth quarter of 2012;
- Adjusted free cash flow increased to $11.9 million in the fourth quarter of 2013 or $0.55 per share as compared to $9.0 million or $0.45 per share in 2012;
- Adjusted return on capital employed decreased to 5.4% in the fourth quarter of 2013 as compared to 6.6% in 2012;
- The Company generated adjusted earnings of $9.0 million in the fourth quarter of 2013. Adjusted pre-tax earnings increased by $3.4 million to $12.3 million in the fourth quarter of 2013 as compared to $8.9 million in the same period in 2012.
In commenting on AutoCanada’s fourth quarter results in 2013, CEO Pat Priestner, stated that, “the fourth quarter was very strong with $14.8 million in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), an increase of over 40 per cent compared to the same quarter of the prior year. A combination of same store sales increases and acquisitions completed during the year is the main contributor to the strong results we achieved in the fourth quarter. We are also pleased to have completed the real estate transaction at the end of the year and look forward to the additional cash flow as a result of the purchase.”
Regarding the company’s financial performance overall in 2013, Priestner stated that, “2013 was a record year in terms of sales and earnings for AutoCanada due to the six dealership acquisitions completed and double digit growth in same store sales and gross profit during the year. We are very proud of the performance of our dealership teams, head office team and OEM partners, all of whom performed exceptionally well in 2013.”
With respect to recent growth opportunities announced, Priestner added that ”we are very pleased to have invested in two General Motors dealerships, located in the province of Saskatchewan, with the Mann family. Both stores are very well established and we are eager to begin operations in the great province of Saskatchewan — a new and exciting market with great potential. The award of a Volkswagen open point in Sherwood Park, Alta., also presents a great opportunity for AutoCanada to grow its dealership base with another excellent brand in a market so close to home.”
