AutoCanada reports record quarterly earnings

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EDMONTON, ALTA. – AutoCanada said revenue increased 11 per cent to $298.7 million while gross profit jumped by 11.6 per cent to $50.1 million in the third quarter.

Reporting financial results late last week, the massive publicly owned dealer group said same store revenue was up eight per cent while same store gross profit grew by 7.9 per cent for the reporting period ended September 30, 2012.

“The third quarter of 2012 was the company's most profitable quarter in its history,” explained AutoCanada chief Pat Priestner, adding that the achievement reflects the continued “general good health of the economy, the quality of the products we sell and the effective use of incentives by our manufacturer partners and the dedicated hard work of our employees.”

Other financial highlights included:
- EBITDA was $10.6 million vs. $8.2 million in Q3 of 2011, a 29.3% increase
- Pre-tax net earnings increased by $2.3 million or 33.6% to $9.2 million
- Net earnings increased by $1.6 million or 30.2% to $6.8 million
- The number of same store new vehicles retailed increased by 10.1%
- The number of same store used vehicles retailed decreased by 3.2%
- Same store repair orders completed for the quarter went up by 0.5%

“Our floorplan financing agreement with our new partner, the Bank of Nova Scotia, was implemented in October, and we look forward to working with the Bank of Nova Scotia in the coming years and to the meaningful interest rate savings our new floorplan shall provide,” he said.

Priestner also said the group was pleased with the performance of its two GM dealerships it had recently purchased an interest in. That move signaled the reversal of a long-held GM policy preventing publicly owned dealership groups from controlling interests in a GM dealership.

With respect to new dealership opportunities, AutoCanada said it is pleased to have secured a suitable facility for the Kia open point dealership during the quarter, in which it plans to commence operations in late 2013 or early 2014.