Stock Name: ACQ
Amount: CAD 0.17
Announcement Date: 08/11/2012
Record Date: 28/11/2012
Dividend Detail:
A conference call to discuss the results for the reporting period ended
September 30, 2012 will be held on November 9, 2012 at 11:00 a.m.
Eastern time (9:00 a.m. Mountain time). To participate in the
conference call, please dial 1-888-231-8191 or (647) 427-7450
approximately 10 minutes prior to the call. A live and archived audio
webcast of the conference call will also be available on the Company's
website www.autocan.ca. A conference call to discuss the results for the reporting period
ended September 30, 2012 will be held on November 9, 2012 at 11:00 a.m.
Eastern time (9:00 a.m. Mountain time). To participate in the
conference call, please dial 1-888-231-8191 or (647) 427-7450
approximately 10 minutes prior to the call. A live and archived audio
webcast of the conference call will also be available on the Company's
website www.autocan.ca.
EDMONTON, Nov. 8, 2012 /CNW/ - AutoCanada Inc. (the "Company" or
"AutoCanada") (TSX: ACQ) today announced financial results for the
reporting period ended September 30, 2012.
2012 Third Quarter Operating Results
|
In commenting on the financial results for the three month period ended
September 30, 2012, Pat Priestner, Chief Executive Officer of
AutoCanada Inc. stated that, "The third quarter of 2012 was the
Company's most profitable quarter in its history, an achievement which
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.
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. We are likewise
very pleased with the performance of the two GM dealerships we recently
purchased an interest in, and look forward to a long term relationship
with GM Canada who has been a great partner to work with. With respect
to new dealership opportunities, we are also pleased to have secured a
suitable facility for the Kia open point dealership during the quarter,
in which we plan to commence operations in late 2013 or early 2014, and
we continue to aggressively seek accretive opportunities with brands
that have accepted public ownership."
With respect to the announced increase in the dividend to a rate of
$0.17 per share or an annual rate of $0.68 per share, Mr. Priestner
further stated, "The Board of Directors continues to remain committed
to a high dividend, which it shall periodically review within the
context of earnings growth, opportunities to re-invest in the business,
and sustainability. Management is confident that opportunities for
acquisition growth will arise in the mid to long term and believe that
when tangible growth opportunities are realized, the incremental
earnings growth will naturally lower our payout ratio as we re-invest
funds into growth opportunities. Until tangible and significant growth
opportunities are realized, we will continue to reward investors by way
of a high dividend."
Third Quarter 2012 Highlights
The Company generated net earnings of $6.8 million or earnings per share
of $0.344 versus earnings per share of $0.263 in the third quarter of
2011.�� Pre-tax earnings increased by $2.3 million to $9.2 million in
the third quarter of 2012 as compared to $6.9 million in the same
period in 2011.
Same store revenue increased by 8.0% in the third quarter of 2012,
compared to the same quarter in 2011.�� Same store gross profit
increased by 7.9% in the third quarter of 2012, compared to the same
quarter in 2011.
Revenue from existing and new dealerships increased 11.0% to $298.7
million in the third quarter of 2012 from $269.1 million in the same
quarter in 2011.
Gross profit from existing and new dealerships increased 11.6% to $50.1
million in the third quarter of 2012 from $44.9 million in the same
quarter in 2011.
EBITDA increased 29.3% to $10.6 million in the third quarter of 2012
from $8.2 million in the same quarter in 2011.
Free cash flow decreased significantly in the third quarter of 2012 to
$0.004 per share as compared to $10.2 million and $0.511 per share in
the third quarter of 2011, mainly due a land and building purchase in
Q3 2012.
Adjusted free cash flow increased to $9.5 million in the third quarter
of 2012 or $0.48 per share as compared to $7.8 million or $0.39 per
share in 2011.
Return on capital employed on a trailing 12 month basis of 22.8% as
compared to 19.1% at September 30, 2011.
Dividends
Management reviews the Company's financial results on a monthly basis.
The Board of Directors reviews the financial results periodically to
determine whether a dividend shall be paid based on a number of
factors.
The following table summarizes the dividends declared by the Company in
2012:
(In thousands of dollars) �� �� �� �� �� �� �� �� �� | |||||||||||||
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | Total | |||
Record date | �� | �� | �� | Payment date | �� | �� | �� | �� | �� | Declared | Paid | ||
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | $ | $ | ||
February 28, 2012 May 31, 2012 August 31, 2012 November 30, 2012 | �� | �� | �� | March 15, 2012 June 15, 2012 September 17, 2012 December 17, 2012 | �� | �� | �� | �� | �� | 2,783 2,982 3,181 3,380 | 2,783 2,982 3,181 - |
On November 8, 2012, the Board declared a quarterly eligible dividend of
$0.17 per common share on AutoCanada's outstanding Class A common
shares, payable on December 17, 2012 to shareholders of record at the
close of business on November 30, 2012.�� The quarterly eligible
dividend of $0.17 represents an annual dividend rate of $0.68 per
share.
Eligible dividend designation
For purposes of the enhanced dividend tax credit rules contained in the
Income Tax Act (Canada) (the "ITA") and any corresponding provincial
and territorial tax legislation, all dividends paid by AutoCanada Inc.
or any of its subsidiaries in 2010 and thereafter are designated as
"eligible dividends" (as defined in 89(1) of the ITA), unless otherwise
indicated.�� Please consult with your own tax advisor for advice with
respect to the income tax consequences to you of AutoCanada Inc.
designating dividends as "eligible dividends".
SELECTED QUARTERLY FINANCIAL INFORMATION
The following table shows the unaudited results of the Company for each
of the eight most recently completed quarters.�� The results of
operations for these periods are not necessarily indicative of the
results of operations to be expected in any given comparable period.
(In thousands of dollars except Operating Data and gross profit %) �� | �� �� �� �� �� �� �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Q4 2010 | Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 | Q2 2012 | Q3 2012 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
Income Statement Data | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | New vehicles | 113,967 | 128,304 | 196,850 | 172,688 | 142,880 | 147,383 | 186,649 | 190,139 |
�� | Used vehicles | 45,414 | 44,906 | 52,054 | 55,351 | 53,719 | 60,454 | 62,822 | 62,816 |
�� | Parts, service & collision repair | 28,351 | 26,539 | 28,374 | 26,980 | 28,673 | 27,029 | 29,004 | 28,593 |
�� | Finance, insurance & other | 10,151 | 11,125 | 13,588 | 14,115 | 13,046 | 13,659 | 16,512 | 17,133 |
Revenue | 197,883 | 210,874 | 290,866 | 269,134 | 238,318 | 248,525 | 294,987 | 298,681 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
�� | New vehicles | 9,023 | 9,725 | 13,974 | 12,740 | 11,267 | 12,046 | 14,646 | 15,461 |
�� | Used vehicles | 3,659 | 3,486 | 4,301 | 5,020 | 4,573 | 4,412 | 4,238 | 3,994 |
�� | Parts, service & collision repair | 13,994 | 13,277 | 15,159 | 14,492 | 14,551 | 14,004 | 15,227 | 15,078 |
�� | Finance, insurance & other | 9,050 | 9,959 | 12,129 | 12,647 | 11,853 | 12,398 | 14,939 | 15,579 |
Gross profit | 35,725 | 36,435 | 45,563 | 44,899 | 42,244 | 42,860 | 49,050 | 50,112 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | |
Gross profit % | 18.1% | 17.3% | 15.7% | 16.7% | 17.7% | 17.2% | 16.6% | 16.8% | |
Operating expenses | 32,010 | 31,891 | 35,127 | 35,742 | 34,086 | 35,381 | 37,661 | 38,361 | |
Operating exp. as % of gross profit | 89.6% | 87.5% | 77.1% | 79.6% | 80.7% | 82.6% | 76.9% | 76.6% | |
Finance costs - floorplan | 1,594 | 1,685 | 2,310 | 2,190 | 1,871 | 1.935 | 2,511 | 2,645 | |
Finance costs - long-term debt | 332 | 283 | 323 | 296 | 234 | 230 | 256 | 267 | |
Reversal of impairment of intangibles | (8,059) | - | - | - | (25,543) | - | - | - | |
Income taxes | 2,418 | 690 | 2,029 | 1,646 | 8,144 | 1,441 | 2,216 | 2,379 | |
Net earnings 4 | 7,575 | 1,994 | 5,950 | 5,230 | 23,608 | 4,113 | 6,711 | 6,807 | |
EBITDA 1, 4 | 3,469 | 4,047 | 9,319 | 8,216 | 7,547 | 6,808 | 10,210 | 10,592 | |
Basic earnings (loss) per share | 0.381 | 0.100 | 0.299 | 0.263 | 1.187 | 0.207 | 0.338 | 0.344 | |
Diluted earnings (loss) per share | 0.381 | 0.100 | 0.299 | 0.263 | 1.187 | 0.207 | 0.338 | 0.344 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
Operating Data | �� | �� | �� | �� | �� | �� | �� | �� | |
Vehicles (new and used) sold | 5,219 | 5,826 | 8,210 | 7,649 | 6,313 | 6,836 | 8,154 | 8,087 | |
New retail vehicles sold | 3,008 | 3,050 | 4,158 | 3,886 | 3,405 | 3,434 | 4,400 | 4,410 | |
New fleet vehicles sold | 306 | 796 | 1,900 | 1,361 | 775 | 969 | 1,313 | 1,265 | |
Used retail vehicles sold | 1,905 | 1,980 | 2,152 | 2,402 | 2,133 | 2,433 | 2,441 | 2,412 | |
Number of service & collision repair orders completed | 77,037 | 72,360 | 80,851 | 76,176 | 75,911 | 74,439 | 78,104 | 78,944 | |
Absorption rate 2 | 86% | 80% | 91% | 90% | 91% | 81% | 89% | 89% | |
# of dealerships at period end | 23 | 23 | 22 | 22 | 24 | 24 | 24 | 24 | |
# of same store dealerships 3 | 21 | 22 | 21 | 21 | 21 | 21 | 21 | 22 | |
# of service bays at period end | 339 | 339 | 322 | 322 | 333 | 333 | 333 | 333 | |
Same store revenue growth 3 | 2.4% | 2.7% | 19.3% | 21.6% | 24.8% | 20.2% | 2.4% | 8.0% | |
Same store gross profit growth 3 | 2.9% | 2.9% | 8.2% | 22.9% | 20.6% | 18.3% | 7.1% | 7.9% | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | |
Balance Sheet Data | �� | �� | �� | �� | �� | �� | �� | �� | |
Cash and cash equivalents | 37,541 | 39,337 | 43,837 | 49,366 | 53,641 | 53,403 | 51,198 | 54,255 | |
Accounts receivable | 32,832 | 42,108 | 51,539 | 44,172 | 42,448 | 51,380 | 52,042 | 54,148 | |
Inventories | 118,088 | 134,710 | 149,481 | 159,732 | 136,869 | 155,778 | 201,302 | 193,990 | |
Revolving floorplan facilities | 124,609 | 152,075 | 172,600 | 175,291 | 150,816 | 178,145 | 221,174 | 212,840 |
�� | �� |
1�� | EBITDA has been calculated as described under "NON-GAAP MEASURES". |
2�� | Absorption has been calculated as described under "NON-GAAP MEASURES". |
3�� | Same store revenue growth & same store gross profit growth is calculated using franchised automobile dealerships that we have owned for at least 2 full years. |
4�� | The results from operations have been lower in the first and fourth quarters of each year, largely due to consumer purchasing patterns during the holiday season, inclement weather and the reduced number of business days during the holiday season. As a result, our financial performance is generally not as strong during the first and fourth quarters than during the other quarters of each fiscal year. The timing of acquisitions may have also caused substantial fluctuations in operating results from quarter to quarter. |
The following table summarizes the results for the three and nine month
periods ended September 30, 2012 on a same store basis by revenue
source and compare these results to the same periods in 2011.
�� | Same Store Revenue and Vehicles Sold | ||||||||||
�� | For the Three Months Ended | �� | For the Nine Months Ended | ||||||||
�� | |||||||||||
(In thousands of dollars except % change and vehicle data) | September 30, 2012 | September 30, 2011 | % Change | �� | September 30, 2012 | September 30, 2011 | % Change | ||||
�� | �� | �� | �� | �� | �� | �� | �� | ||||
Revenue Source | �� | �� | �� | �� | �� | �� | �� | ||||
New vehicles | 185,963 | 172,688 | 7.7% | �� | 511,856 | 485,476 | 5.4% | ||||
Used vehicles | 60,402 | 55,351 | 9.1% | �� | 180,511 | 149,638 | 20.6% | ||||
Finance & insurance and other | 16,499 | 14,114 | 16.9% | �� | 45,881 | 38,210 | 20.1% | ||||
Subtotal | 262,864 | 242,153 | �� | �� | 738,248 | 673,324 | �� | ||||
Parts, service & collision repair | 27,826 | 26,978 | 3.1% | �� | 82,413 | 79,560 | 3.6% | ||||
Total | 290,690 | 269,131 | 8.0% | �� | 820,661 | 752,884 | 9.0% | ||||
�� | �� | �� | �� | �� | �� | �� | �� | ||||
New vehicles - retail sold | 4,278 | 3,886 | 10.1% | �� | 11,866 | 10,812 | 9.7% | ||||
New vehicles - fleet sold | 1265 | 1,361 | (7.1)% | �� | 3,547 | 3,961 | (10.5)% | ||||
Used vehicles sold | 2,326 | 2,402 | (3.2)% | �� | 7,063 | 6,445 | 9.6% | ||||
Total | 7,869 | 7,649 | 2.9% | �� | 22,476 | 21,218 | 5.9% | ||||
Total vehicles retailed | 6,604 | 6,288 | 5.0% | �� | 18,929 | 17,257 | 9.7% | ||||
�� | �� | �� | �� | �� | �� | �� | �� |
The following table summarizes the results for the three and nine month
periods ended September 30, 2012 on a same store basis by revenue
source and compare these results to the same periods in 2011.
�� | Same Store Gross Profit and Gross Profit Percentage | |||||||||||
�� | For the Three Months Ended | For the Nine months Ended | ||||||||||
�� | Gross Profit | �� | Gross Profit % | �� | Gross Profit | �� | Gross Profit % | �� | ||||
(In thousands of dollars except % change and gross profit %) | September 30, 2012 | September 30, 2011 | % Change | September 30, 2012 | September 30, 2011 | % Change | September 30, 2012 | September 30, 2011 | % Change | September 30, 2012 | September 30, 2011 | % Change |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
Revenue Source | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
New vehicles | 14,953 | 12,727 | 17.5% | 8.0% | 7.4% | 0.7% | 40,720 | 35,794 | 13.8% | 8.0% | 7.4% | 0.6% |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
Used vehicles | 3,806 | 5,019 | (24.2)% | 6.3% | 9.1% | (2.8)% | 12,121 | 12,767 | (5.1)% | 6.7% | 8.5% | (1.8)% |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
Finance & insurance and other | 15,024 | 12,646 | 18.8% | 91.1% | 89.6% | 1.5% | 41,673 | 34,204 | 21.8% | 90.8% | 89.5% | 1.3% |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
Subtotal | 33,783 | 30,392 | �� | �� | �� | �� | 94,614 | 82,765 | �� | �� | �� | �� |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
Parts, service & collision repair | 14,645 | 14,507 | 0.9% | 52.6% | 53.8% | (1.1)% | 43,102 | 41,722 | 3.3% | 52.3% | 52.4% | (0.1)% |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
Total | 48,428 | 44,899 | 7.9% | 16.7% | 16.7% | 0.0% | 137,616 | 124,487 | 10.5% | 16.8% | 16.5% | 0.3% |
�� | |||||
�� | |||||
�� | |||||
AutoCanada Inc. Condensed Interim Consolidated Statements of Comprehensive Income (Unaudited) (in thousands of Canadian dollars except for share and per share amounts) | |||||
�� | �� | �� | �� | �� | |
�� | Three month period ended | Three month period ended | Nine month period ended | Nine month period ended | |
�� | September 30, 2012 $ | September 30, 2011 $ | September 30, 2012 $ | September 30, 2011 $ | |
Revenue (Note 6) | ������������298,681�� | ������������269,134�� | ������������842,193�� | ������������770,874�� | |
�� | �� | �� | �� | �� | |
Cost of sales (Note 7) | ������������(248,569)�� | ������������(224,235)�� | ������������(700,172)�� | ������������(643,965)�� | |
�� | �� | �� | �� | �� | |
Gross profit | ������������50,112�� | ������������44,899�� | ������������142,021�� | ������������126,909�� | |
�� | �� | �� | �� | �� | |
Operating expenses (Note 8) | ������������(38,361)�� | ������������(35,742)�� | ������������(111,402)�� | ������������(102,760)�� | |
�� | �� | �� | �� | �� | |
Operating profit before other income | ������������11,751�� | ������������9,157�� | ������������30,619�� | ������������24,149�� | |
(Loss) Gain on disposal of assets | ������������(1)�� | ������������1�� | ������������(61)�� | ������������29�� | |
Income from investment in associate (Note 11) | ������������130�� | ������������-�� | ������������213�� | ������������-�� | |
Operating profit | ������������11,880�� | ������������9,158�� | ������������30,771�� | ������������24,178�� | |
Finance costs (Note 9) | ������������(3,136)�� | ������������(2,651)�� | ������������(8,410)�� | ������������(7,564)�� | |
Finance income (Note 9) | ������������442�� | ������������369�� | ������������1,303�� | ������������925�� | |
�� | �� | �� | �� | �� | |
Net comprehensive income for the period | �� | �� | �� | �� | |
�� | before taxation | ������������9,186�� | ������������6,876�� | ������������23,664�� | ������������17,539�� |
Income tax (Note 10) | ������������2,379�� | ������������1,646�� | ������������6,036�� | ������������4,365�� | |
�� | �� | �� | �� | �� | |
Net comprehensive income for the period | ������������6,807�� | ������������5,230�� | ������������17,628�� | ������������13,174�� | |
�� | �� | �� | �� | �� | |
�� | �� | �� | �� | �� | |
Earnings per share�� | �� | �� | �� | �� | |
Basic�� | ������������0.344�� | ������������0.263�� | ������������0.884�� | ������������0.663�� | |
Diluted�� | ������������0.344�� | ������������0.263�� | ������������0.884�� | ������������0.663�� | |
�� | �� | �� | �� | �� | |
�� | �� | �� | �� | �� | |
Weighted average shares�� | �� | �� | �� | �� | |
Basic�� | ������������19,804,014�� | ������������19,880,930�� | ������������19,853,694�� | ������������19,880,930�� | |
Diluted�� | ������������19,804,014�� | ������������19,880,930�� | ������������19,853,694�� | ������������19,880,930�� | |
�� | |||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements. |
Approved on behalf of the Company:
(Signed) "Gordon R. Barefoot", Director��������(Signed) "Robin Salmon",
Director
AutoCanada Inc. Condensed Interim Consolidated Statements of Financial Position (Unaudited) (in thousands of Canadian dollars except for share and per share amounts) | ||
�� | �� | �� |
�� | September 30, ������������2012�� (Unaudited) $ | December 31, ������������2011 (Audited) $ |
ASSETS | �� | �� |
Current assets | �� | �� |
Cash and cash equivalents | ������������54,255�� | ������������53,641�� |
Trade and other receivables (Note 12) | ������������54,148�� | ������������42,448�� |
Inventories (Note 13) | ������������193,990�� | ������������137,016�� |
Other current assets | ������������1,794�� | ������������1,120�� |
�� | ������������304,187�� | ������������234,225�� |
Property and equipment | ������������37,125�� | ������������25,975�� |
Investment in associate (Note 11) | ������������4,367�� | ������������-�� |
Intangible assets | ������������66,181�� | ������������66,181�� |
Goodwill | ������������380�� | ������������380�� |
Other long-term assets | ������������7,810�� | ������������7,609�� |
�� | ������������420,050�� | ������������334,370�� |
LIABILITIES | �� | �� |
Current liabilities | �� | �� |
Trade and other payables (Note 15) | ������������35,665�� | ������������32,279�� |
Revolving floorplan facilities (Note 11) | ������������212,840�� | ������������150,816�� |
Current tax payable | ������������4,600�� | ������������2,046�� |
Current lease obligations (Note 17) | ������������1,783�� | ������������1,204�� |
Current indebtedness (Note 16) | ������������5,973�� | ������������2,859�� |
�� | ������������260,861�� | ������������189,204�� |
Long-term indebtedness (Note 16) | ������������26,039�� | ������������20,115�� |
Deferred tax | ������������11,897�� | ������������12,056�� |
�� | ������������298,797�� | ������������221,375�� |
EQUITY | ������������121,253�� | ������������112,995�� |
�� | ������������420,050�� | ������������334,370�� |
�� | �� | �� |
The accompanying notes are an integral part of these condensed interim consolidated financial statements. |
�� | �� | �� | �� | �� | �� | �� |
�� | �� | �� | �� | �� | �� | �� |
�� | �� | �� | �� | �� | �� | �� |
AutoCanada Inc. Condensed Interim Consolidated Statements of Changes in Equity For the Periods Ended (Unaudited) (in thousands of Canadian dollars) | ||||||
�� | �� | �� | �� | �� | �� | �� |
�� | Share capital $ | Treasury shares $ | Contributed surplus $ | Total capital $ | Accumulated deficit $ | Equity $ |
Balance,�� January 1, 2012�� | ������������190,435�� | ������������-�� | ������������3,918�� | ������������194,353�� | ������������(81,358)�� | ������������112,995�� |
Net comprehensive income | ������������-�� | ������������-�� | ������������-�� | ������������-�� | ������������17,628�� | ������������17,628�� |
Dividends declared on common shares | ������������-�� | ������������-�� | ������������-�� | ������������-�� | ������������(8,935)�� | ������������(8,935)�� |
Common shares repurchased (Note 20) | ������������-�� | ������������(910)�� | ������������-�� | ������������(910)�� | ������������-�� | ������������(910)�� |
Share-based compensation | ������������-�� | ������������-�� | ������������475�� | ������������475�� | ������������-�� | ������������475�� |
Balance, September 30, 2012 | ������������190,435�� | ������������(910)�� | ������������4,393�� | ������������193,918�� | ������������(72,665)�� | ������������121,253�� |
�� | �� | �� | �� | �� | �� | �� |
�� | �� | �� | �� | �� | �� | �� |
�� | Share capital $ | Treasury shares $ | Contributed surplus $ | Total capital $ | Accumulated deficit $ | Equity $ |
Balance, January 1, 2011�� | ������������190,435�� | ������������-�� | ������������3,918�� | ������������194,353�� | ������������(111,979)�� | ������������82,374�� |
Net comprehensive income | ������������-�� | ������������-�� | ������������-�� | ������������-�� | ������������13,174�� | ������������13,174�� |
Dividends declared on common shares | ������������-�� | ������������-�� | ������������-�� | ������������-�� | ������������(3,777)�� | ������������(3,777)�� |
Balance, September 30, 2011 | ������������190,435�� | ������������-�� | ������������3,918�� | ������������194,353�� | ������������(102,582)�� | ������������91,771�� |
�� | �� | �� | �� | �� | �� | �� |
The accompanying notes are an integral part of these condensed interim consolidated financial statements. |
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�� | ||||||||
AutoCanada Inc. Condensed Interim Consolidated Statements of Cash Flows For the Periods Ended (Unaudited) (in thousands of Canadian dollars) | ||||||||
�� | �� | �� | �� | |||||
�� | �� | �� | Three month period ended September 30, 2012 | Three month period ended September 30, 2011 | Nine month period ended September 30, 2012 | Nine month period ended September 30, 2011 | ||
Cash flows from operating activities: | �� | �� | �� | �� | �� | �� | ||
Net comprehensive income | �� | �� | ������������6,807�� | ������������5,230�� | ������������17,628�� | ������������13,174�� | ||
Income taxes (Note 10) | �� | �� | ������������2,379�� | ������������1,646�� | ������������6,036�� | ������������4,365�� | ||
Amortization of prepaid rent | �� | �� | ������������113�� | ������������113�� | ������������339�� | ������������339�� | ||
Amortization of property and equipment (Note 8) | �� | �� | ������������1,139�� | ������������1,044�� | ������������3,189�� | ������������3,141�� | ||
Gain (Loss) on disposal of assets | �� | �� | ������������1�� | ������������(1)�� | ������������61�� | ������������(29)�� | ||
Share-based compensation | �� | �� | ������������205�� | ������������-�� | ������������565�� | ������������-�� | ||
Income from investment in associate (Note 11) | �� | �� | ������������(130)�� | ������������-�� | ������������(213)�� | ������������-�� | ||
Income taxes paid | �� | �� | ������������(485)�� | ������������-�� | ������������(3,584)�� | ������������-�� | ||
Net change in non-cash working capital | �� | �� | ������������(794)�� | ������������2,818�� | ������������(4,704)�� | ������������(681)�� | ||
�� | �� | �� | ������������9,235�� | ������������10,850�� | ������������19,317�� | ������������20,309�� | ||
Cash flows from investing activities: | �� | �� | �� | �� | �� | �� | ||
Business acquisitions (Note 11) | �� | �� | ������������-�� | ������������-�� | ������������(4,154)�� | ������������-�� | ||
Purchases of property and equipment (Note 14) | �� | �� | ������������(9,161)�� | ������������(694)�� | ������������(13,150)�� | ������������(2,236)�� | ||
Disposal of other assets | �� | �� | ������������-�� | ������������2�� | ������������-�� | ������������7�� | ||
Prepayments of rent (Note 21) | �� | �� | ������������-�� | ������������(540)�� | ������������(540)�� | ������������(1,620)�� | ||
Proceeds on sale of property and equipment | �� | �� | ������������-�� | ������������-�� | ������������28�� | ������������-�� | ||
Proceeds on divestiture of subsidiary | �� | �� | ������������-�� | ������������-�� | ������������-�� | ������������1,464�� | ||
�� | �� | �� | ������������(9,161)�� | ������������(1,232)�� | ������������(17,816)�� | ������������(2,385)�� | ||
Cash flows from financing activities: | �� | �� | �� | �� | �� | �� | ||
Proceeds from long-term debt (Note 16) | �� | �� | ������������6,250�� | ������������-�� | ������������9,250�� | ������������-�� | ||
Repayment of long-term indebtedness | �� | �� | ������������(98)�� | ������������(2,102)�� | ������������(292)�� | ������������(2,322)�� | ||
Common shares repurchased (Note 20) | �� | �� | ������������-�� | ������������-�� | ������������(910)�� | ������������-�� | ||
Dividends paid | �� | �� | ������������(3,169)�� | ������������(1,987)�� | ������������(8,935)�� | ������������(3,777)�� | ||
�� | �� | �� | ������������2,983�� | ������������(4,089)�� | ������������(887)�� | ������������(6,099)�� | ||
Increase in cash | �� | �� | ������������3,057�� | ������������5,529�� | ������������614�� | ������������11,825�� | ||
Cash and cash equivalents at beginning of period | �� | �� | ������������51,198�� | ������������43,837�� | ������������53,641�� | ������������37,541�� | ||
�� | �� | �� | �� | �� | �� | �� | ||
Cash and cash equivalents at end of period | �� | �� | ������������54,255�� | ������������49,366�� | ������������54,255�� | ������������49,366�� | ||
�� | �� | �� | �� | �� | �� | �� | ||
The accompanying notes are an integral part of these condensed interim consolidated financial statements. |
ABOUT AUTOCANADA
AutoCanada is one of Canada's largest multi-location automobile
dealership groups, currently operating 24 wholly owned franchised
dealerships and 2 dealership investments in British Columbia, Alberta,
Manitoba, Ontario, New Brunswick and Nova Scotia. In 2011, our
dealerships sold approximately 28,000 vehicles and processed
approximately 300,000��service and collision repair orders in our 333
service bays during that time.
Our dealerships derive their revenue from the following four
inter-related business operations: new vehicle sales; used vehicle
sales; parts, service and collision repair; and finance and insurance.
While new vehicle sales are the most important source of revenue, they
generally result in lower gross profits than used vehicle sales, parts,
service and collision repair operations and finance and insurance
sales. Overall gross profit margins increase as revenues from higher
margin operations increase relative to revenues from lower margin
operations. We earn fees for arranging financing on new and used
vehicle purchases on behalf of third parties.�� Under our agreements
with our retail financing sources we are required to collect and
provide accurate financial information, which if not accurate, may
require us to be responsible for the underlying loan provided to the
consumer.
FORWARD LOOKING STATEMENTS
Certain statements contained in this press release are forward-looking
statements and information (collectively "forward-looking statements"),
within the meaning of the applicable Canadian securities legislation.��
We hereby provide cautionary statements identifying important factors
that could cause our actual results to differ materially from those
projected in these forward-looking statements.�� Any statements that
express, or involve discussions as to, expectations, beliefs, plans,
objectives, assumptions or future events or performance (often, but not
always, through the use of words or phrases such as "will likely
result", "are expected to", "will continue", "is anticipated",
"projection", "vision", "goals", "objective", "target", "schedules",
"outlook", "anticipate", "expect", "estimate", "could", "should",
"expect", "plan", "seek", "may", "intend", "likely", "will", "believe"
and similar expressions are not historical facts and are
forward-looking and may involve estimates and assumptions and are
subject to risks, uncertainties and other factors some of which are
beyond our control and difficult to predict.�� Accordingly, these
factors could cause actual results or outcomes to differ materially
from those expressed in the forward-looking statements.�� Therefore, any
such forward-looking statements are qualified in their entirety by
reference to the factors discussed throughout this document.
The Company's Annual Information Form and other documents filed with
securities regulatory authorities (accessible through the SEDAR website
www.sedar.com describe the risks, material assumptions and other factors that could
influence actual results and which are incorporated herein by
reference.
Further, any forward-looking statement speaks only as of the date on
which such statement is made, and, except as required by applicable
law, we undertake no obligation to update any forward-looking statement
to reflect events or circumstances after the date on which such
statement is made or to reflect the occurrence of unanticipated
events.�� New factors emerge from time to time, and it is not possible
for management to predict all of such factors and to assess in advance
the impact of each such factor on our business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statement.
NON-GAAP MEASURES
This press release contains certain financial measures that do not have
any standardized meaning prescribed by Canadian GAAP.�� Therefore, these
financial measures may not be comparable to similar measures presented
by other issuers.�� Investors are cautioned these measures should not be
construed as an alternative to net earnings (loss) or to cash provided
by (used in) operating, investing, and financing activities determined
in accordance with Canadian GAAP, as indicators of our performance.�� We
provide these measures to assist investors in determining our ability
to generate earnings and cash provided by (used in) operating
activities and to provide additional information on how these cash
resources are used.�� We list and define these "NON-GAAP MEASURES"
below:
EBITDA
EBITDA is a measure commonly reported and widely used by investors as an
indicator of a company's operating performance and ability to incur and
service debt, and as a valuation metric.�� The Company believes EBITDA
assists investors in comparing a company's performance on a consistent
basis without regard to depreciation and amortization and asset
impairment charges which are non-cash in nature and can vary
significantly depending upon accounting methods or non-operating
factors such as historical cost.�� References to "EBITDA" are to
earnings before interest expense (other than interest expense on
floorplan financing and other interest), income taxes, depreciation,
amortization and asset impairment charges.
EBIT
EBIT is a measure used by management in the calculation of Return on
capital employed (defined below).�� Management's calculation of EBIT is
EBITDA (calculated above) less depreciation and amortization.
Free Cash Flow
Free cash flow is a measure used by management to evaluate its
performance.�� While the closest Canadian GAAP measure is cash provided
by operating activities, free cash flow is considered relevant because
it provides an indication of how much cash generated by operations is
available after capital expenditures.�� It shall be noted that although
we consider this measure to be free cash flow, financial and
non-financial covenants in our credit facilities and dealer agreements
may restrict cash from being available for distributions, re-investment
in the Company, potential acquisitions, or other purposes.�� Investors
should be cautioned that free cash flow may not actually be available
for growth or distribution of the Company.�� References to "Free cash
flow" are to cash provided by (used in) operating activities (including
the net change in non-cash working capital balances) less capital
expenditures (not including acquisitions of dealerships and dealership
facilities).
Adjusted Free Cash Flow
Adjusted free cash flow is a measure used by management to evaluate its
performance. Adjusted free cash flow is considered relevant because it
provides an indication of how much cash generated by operations before
changes in non-cash working capital is available after deducting
expenditures for non-growth capital assets.�� It shall be noted that
although we consider this measure to be adjusted free cash flow,
financial and non-financial covenants in our credit facilities and
dealer agreements may restrict cash from being available for
distributions, re-investment in the Company, potential acquisitions, or
other purposes.�� Investors should be cautioned that adjusted free cash
flow may not actually be available for growth or distribution of the
Company.�� References to "Adjusted free cash flow" are to cash provided
by (used in) operating activities (before changes in non-cash working
capital balances) less non-growth capital expenditures.
Adjusted Average Capital Employed
Adjusted average capital employed is a measure used by management to
determine the amount of capital invested in AutoCanada and is used in
the measure of Adjusted Return on Capital Employed (described below).��
Adjusted average capital employed is calculated as the average balance
of interest bearing debt for the period (including current portion of
long term debt, excluding revolving floorplan facilities) and the
average balance of shareholders equity for the period, adjusted for
impairments of intangible assets, net of deferred tax.�� Management does
not include future income tax, non-interest bearing debt, or revolving
floorplan facilities in the calculation of adjusted average capital
employed as it does not consider these items to be capital, but rather
debt incurred to finance the operating activities of the Company.
Absorption Rate
Absorption rate is an operating measure commonly used in the retail
automotive industry as an indicator of the performance of the parts,
service and collision repair operations of a franchised automobile
dealership. Absorption rate is not a measure recognized by GAAP and
does not have a standardized meaning prescribed by GAAP. Therefore,
absorption rate may not be comparable to similar measures presented by
other issuers that operate in the retail automotive industry.��
References to ''absorption rate'' are to the extent to which the gross
profits of a franchised automobile dealership from parts, service and
collision repair cover the costs of these departments plus the fixed
costs of operating the dealership, but does not include expenses
pertaining to our head office. For this purpose, fixed operating costs
include fixed salaries and benefits, administration costs, occupancy
costs, insurance expense, utilities expense and interest expense (other
than interest expense relating to floor plan financing) of the
dealerships only.
Average Capital Employed
Average capital employed is a measure used by management to determine
the amount of capital invested in AutoCanada and is used in the measure
of Return on Capital Employed (described below).�� Average capital
employed is calculated as the average balance of interest bearing debt
for the period (including current portion of long term debt, excluding
revolving floorplan facilities) and the average balance of shareholders
equity for the period.�� Management does not include future income tax,
non-interest bearing debt, or revolving floorplan facilities in the
calculation of average capital employed as it does not consider these
items to be capital, but rather debt incurred to finance the operating
activities of the Company.
Return on Capital Employed
Return on capital employed is a measure used by management to evaluate
the profitability of our invested capital.�� As a corporation,
management of AutoCanada may use this measure to compare potential
acquisitions and other capital investments against our internally
computed cost of capital to determine whether the investment shall
create value for our shareholders.�� Management may also use this
measure to look at past acquisitions, capital investments and the
Company as a whole in order to ensure shareholder value is being
achieved by these capital investments.�� Return on capital employed is
calculated as EBIT (defined above) divided by Average Capital Employed
(defined above).
Adjusted Return on Capital Employed
Adjusted return on capital employed is a measure used by management to
evaluate the profitability of our invested capital.�� As a corporation,
management of AutoCanada may use this measure to compare potential
acquisitions and other capital investments against our internally
computed cost of capital to determine whether the investment shall
create value for our shareholders.�� Management may also use this
measure to look at past acquisitions, capital investments and the
Company as a whole in order to ensure shareholder value is being
achieved by these capital investments.�� Adjusted return on capital
employed is calculated as EBIT (defined above) divided by Adjusted
Average Capital Employed (defined above).
Cautionary Note Regarding Non-GAAP Measures
EBITDA, EBIT, Free Cash Flow, Adjusted Free Cash Flow, Absorption Rate,
Average Capital Employed and Return on Capital Employed are not
earnings measures recognized by GAAP and do not have standardized
meanings prescribed by GAAP.�� Investors are cautioned that these
non-GAAP measures should not replace net earnings or loss (as
determined in accordance with GAAP) as an indicator of the Company's
performance, of its cash flows from operating, investing and financing
activities or as a measure of its liquidity and cash flows. The
Company's methods of calculating EBITDA, EBIT, Free Cash Flow, Adjusted
Free Cash Flow, Absorption Rate, Average Capital Employed and Return on
Capital Employed may differ from the methods used by other issuers.
Therefore, the Company's EBITDA, EBIT, Free Cash Flow, Adjusted Free
Cash Flow, Absorption Rate, Average Capital Employed and Return on
Capital Employed may not be comparable to similar measures presented by
other issuers.
Additional information about AutoCanada Inc. is available at the
Company's website at www.autocan.ca and www.sedar.com.
SOURCE: AutoCanada Inc.
For further information:
Jeff Christie, CA
Vice-President, Finance
Phone:�� (780) 732-7164���� Email:��jchristie@autocan.ca
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