Revenue was $1,420.9 million as compared to $1,539.3 million in the prior year, a decrease of (7.7)% Net (loss) income for the period was $(2.4) million as compared to $8.4 million in the prior year, a decrease of (128.2)% Diluted earnings (loss) per share was $(0.10) as compared to $0.32 in the prior year Adjusted EBITDA1 was $22.0 million versus $45.0 million in the prior year, a decrease of $(23.0) million EDMONTON, AB, May 1, 2024 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX:ACQ), a multi-location North American automobile dealership group, today reported its financial results for the three-month period ended March 31, 2024. "During the first quarter, the trend of replenishing new light vehicle inventory, combined with consumer preference to buy affordable vehicles and minimize borrowing costs, resulted in continued normalization of total gross profit per new retail unit." said Paul Antony, AutoCanada's Executive Chair. "This combined with extremely cold weather impacting foot traffic in many of our Western Canadian stores, along with a shortage of quality, well priced used vehicles available to procure for our used division, culminated in challenging operational dynamics during the first quarter." "Against this backdrop of difficult market conditions, AutoCanada remains focused on its strategies to outperform the broader market while protecting profitability and executing against Project Elevate initiatives. During the first quarter, we completed restructuring the US division and began implementing Canadian operating standards, which will have a positive impact in coming quarters. We also began the process to implement standard operating expense ratios by brand in Canada, which will benefit the Canadian operations later this fall and through the end of this year. These, along with our numerous Project Elevate initiatives to maximize gross profit, modernize our corporate infrastructure and optimize our cost structure, are the path to a lower cost and more profitable business in the future. I'd like to express my appreciation for the hard work and commitment of our employees and thank our OEM partners for their continued support." First Quarter Key Highlights and Recent Developments Three-Months Ended March 31 CONSOLIDATED FINANCIAL RESULTS 2024 2023 % Change Revenue 1,420,928 1,539,326 (7.7) % Same store revenue 2 1,377,993 1,528,883 (9.9) % Gross profit 229,327 254,982 (10.1) % Gross profit percentage 2 16.1 % 16.6 % (0.5) ppts Operating expenses 211,664 211,601 0.0 % Net (loss) income (2,361) 8,384 (128.2) % Basic net (loss) income per share attributable to AutoCanada shareholders (0.10) 0.33 (130.3) % Diluted net (loss) income per share attributable to AutoCanada shareholders (0.10) 0.32 (131.3) % Adjusted EBITDA 1 21,966 45,028 (51.2) % Adjusted EBITDA Margin 1 1.5 % 2.9 %  (1.4) ppts New retail vehicles2 sold (units) 9,287 8,771 5.9 % Used retail vehicles2 sold (units) 13,330 15,290 (12.8) % New vehicle gross profit per retail unit 2 4,859 5,337 (9.0) % Used vehicle gross profit per retail unit 2 1,264 1,317 (4.0) % Parts and service ("P&S") gross profit 83,258 83,231 0.0 % Collision repair ("Collision") gross profit 14,304 10,645 34.4 % Finance, insurance and other ("F&I") gross profit per retail unit average2 3,275 3,462 (5.4) % Normalized operating expenses before depreciation 1 191,321 194,414 (1.6) % Normalized operating expenses before depreciation as a % of gross profit 1 83.4 % 76.2 % 7.2 ppts Floorplan financing expense 19,617 15,697 25.0 % Consolidated revenue decreased due to lower used retail vehicle2 sales, and lower F&I revenues, partially offset by higher new vehicle sales, positive contributions from collision operations and recent acquisitions. Consolidated gross profit decreased primarily due to lower used retail vehicle sales and lower contributions from F&I. Normalized operating expenses before depreciation1, which excludes share-based compensation, transaction costs, and other non-recurring costs, declined due to lower employee costs. Normalized operating expenses before depreciation as a percentage of gross profit1 increased due to compressed gross profit. Floorplan financing expenses increased as a result of higher interest rates and rising new inventory levels partially offset by lower used vehicle inventory levels. Net loss for the period resulted from lower gross profits for the reasons stated above, an impairment charge in the current quarter for an asset held for sale, and higher floorplan financing expenses, partially offset by gains from the sale of two properties completed during the quarter. Adjusted EBITDA1 for the period and adjusted EBITDA margin1 decreased primarily as a result of lower gross profits combined with higher floorplan financing expenses. Canadian Operations Highlights Three-Months Ended March 31 CANADIAN FINANCIAL RESULTS 2024 2023 % Change Revenue 1,240,279 1,340,255 (7.5) % Gross profit 200,778 220,373 (8.9) %   Gross profit percentage 2 16.2 % 16.4 %   (0.2) ppts Operating expenses 180,056 177,396 1.5 % Net income 6,681 12,428 (46.2) %   Adjusted EBITDA 1 25,901 44,566 (41.9) % Adjusted EBITDA margin 1 2.1 % 3.3 %   (1.2) ppts   New retail vehicles2 sold (units) 7,909 7,603 4.0 %   Used retail vehicles2 sold (units) 11,600 13,106 (11.5) %   Used-to-new retail units ratio 2 1.47 1.72 (14.5) %   New vehicle gross profit per retail unit 2 5,026 5,386 (6.7) %   Used vehicle gross profit per retail unit 2 1,484 1,431 3.7 % P&S gross profit 69,742 71,738 (2.8) % Collision gross profit 14,304 10,645 34.4 % F&I gross profit per retail unit average 2 3,263 3,473 (6.0) % Revenue and gross profit decreased as a result of lower used vehicle sales and F&I operations, partially offset by contributions from collision operations, new vehicle sales and recent acquisitions. Growth in collision gross profit was driven by strong customer demand, increased production capacity and acquisitions. Used vehicle gross profit per retail unit2 increased due to a larger inventory writedown provision recognized in the prior year. F&I gross profit per retail unit average2 decreased as a growing proportion of retail vehicle sales are being purchased without dealer financing, resulting in fewer opportunities to sell higher margin warranty and insurance products. Adjusted EBITDA1 declined due to the reasons stated above combined with higher floorplan financing expenses. U.S. Operations Highlights Three-Months Ended March 31 U.S. FINANCIAL RESULTS 2024 2023 % Change Revenue 180,649 199,071 (9.3) % Gross profit 28,549 34,609 (17.5) %   Gross profit percentage 2 15.8 % 17.4 % (1.6) ppts Operating expenses 31,608 34,205 (7.6) % Net loss (9,042) (4,044) (123.6) %   Adjusted EBITDA 1 (3,935) 462 (951.7) % Adjusted EBITDA margin 1 (2.2) % 0.2 % (2.4) ppts   New retail vehicles2 sold (units) 1,378 1,168 18.0 %   Used retail vehicles2 sold (units) 1,730 2,184 (20.8) %   Used-to-new retail units ratio 2 1.26 1.87 (32.6) %   New vehicle gross profit per retail unit 2 3,904 5,023 (22.3) %   Used vehicle gross profit per retail unit 2 (213) 634 (133.6) % P&S gross profit 13,516 11,493 17.6 % F&I gross profit per retail unit average 2 3,353 3,400 (1.4) % Revenue and gross profit declined due to lower used retail vehicle2 sales and lower F&I performance, partially offset by contributions from P&S operations and new retail vehicle sales. Used vehicle performance was negatively impacted by market dynamics that made sourcing optimal used vehicle inventory more challenging. P&S gross profit increased due to the successful implementation of various initiatives to improve operational effectiveness. Adjusted EBITDA1 declined due to lower used vehicle gross profits and higher floorplan financing costs, partially offset by higher P&S gross profit. Collision Centre Operations Highlights Three-Months Ended March 31 Collision Centre Financial Results 2024 2023 % Change Revenue 32,601 27,751 17.5 % Gross profit 14,304 10,645 34.4 %   Gross profit percentage 2 43.9 % 38.4 % 5.5 ppts Adjusted EBITDA 1 2,685 2,580 4.1 %   Same store revenue 2 26,851 26,199 2.5 %   Same store gross profit 2 12,092 9,212 31.3 %   Same store gross profit percentage 2 45.0 % 35.2 % 9.8 ppts Collision revenue, gross profit, and gross profit percentage2 increased reflecting contributions from acquisitions and strong customer demand supported by increased Original Equipment Manufacturers ("OEM") certifications and insurance referrals. Same store2 revenue, gross profit, and gross profit percentage2 increased for the reasons noted. Adjusted EBITDA1 increased for the reasons noted above. Other Recent Developments During the quarter: On February 1, 2024, the Company entered into a $75.0 million interest rate swap with a fixed one-month Canadian Dollar Offered Rate ("CDOR") of 3.77%. The swap has an initial settlement date of February 1, 2027 and may be extended by the counterparty to February 1, 2029. On February 1, 2024, the Company completed the previously announced sale of two properties located in British Columbia and Alberta for cash consideration of $41.4 million plus customary closing adjustments. Refer to Section 5 Acquisitions, Divestitures, and Other Recent Developments for additional information. On March 1, 2024, the newly built open point dealership, Maple Ridge GM, located in Maple Ridge, B.C., commenced operations. The dealership consists of a dealership and service facility with 14 service bays and is the Company's first GM dealership in the Metro Vancouver area. On March 7, 2024, the Company announced that it had received approval from the Toronto Stock Exchange ("TSX") for the renewal of its normal course issuer bid ("NCIB"). Pursuant to the NCIB, AutoCanada may purchase up to 1,329,106 common shares during the twelve-month period commencing March 11, 2024 and ending March 10, 2025 or such earlier date as the Company may complete its purchases under the NCIB. For the period ended March 31, 2024, the Company has repurchased and cancelled 78,688 common shares for an average price of $24.67 and total cash consideration of approximately $1.9 million. On March 27, 2024, in connection with its previously announced NCIB, AutoCanada received approval from the TSX to implement an automatic share purchase plan ("ASPP") with its designated broker. The ASPP will terminate on March 10, 2025, unless terminated earlier in accordance with its terms. After the quarter: For the period from April 1, 2024 to May 1, 2024, under the NCIB and ASPP, the Company has repurchased and cancelled 78,000 common shares for an average price of $24.53 and total cash consideration of approximately $1.9 million. On April 22, 2024, the Company entered into the fourth amended and restated credit agreement ("New Credit Facility") with the existing lending syndicate. The New Credit Facility includes the following: Extend the maturity date to April 22, 2027 to maintain a three-year term; Creation of a new $25 million capital expenditure term facility, and a corresponding $25 million accordion facility, to support the anticipated leasehold spending in the coming quarters; Total aggregate bank facilities increased from $1.610 billion to $1.635 billion, with no changes to the revolving, wholesale flooring, and ...