AutoCanada Inc., posted a 22-percent surge in net income in the first quarter of 2014 to C$8.3 million ($7.6 million) from C$6.82 million in the same period in 2013, as boosted by higher operating results in used vehicle, parts, service and collision repair departments. EBITDA (earnings before interest, tax, depreciation and amortization) in the first quarter of 2014 was C$14.45 million, compared to C$10.51 million in the same quarter in 2013.
Moreover, the company also logged a 28-percent increase in total revenues to C$364.3 million in the first quarter of 2014, compared to $284.1 million in the same period in 2013. Gross profit in the first quarter of 2014 was C$63.47 million, which is a big jump from C$51.1 million in the same quarter in 2013.
AutoCanada chief executive Pat Priestner, said in a statement that the company’s improved operating results more than offset what they considered a “slightly weaker than expected quarter” for new vehicle sales and new vehicle margins. The company sold 4,773 new vehicles in the first quarter of 2014, compared to 4,118 retailed in same period last year.
Priestner attributed the successful first quarter to “exceptional dealership teams” and to strong performance in all of the company’s four departments. The company posted a 24-percent rise in new vehicle revenue, including fleet, to $216.5 million in the first quarter of 2014, compared to $174.3 million in the same period in 2013.
AutoCanada saw its same store-revenue jump 13 percent to $313 million in the first three months of 2014, from $277 million in the same quarter in 2013.
Founded by Pat Priestner in 2006, AutoCanada Inc. is based in Edmonton, Alberta, Canada. AutoCanada is considered one of the largest multi-location automobile dealership groups in Canada. It operates 28 wholly owned franchised dealerships and manages five franchised dealership investments in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick and Nova Scotia.
In 2013, AutoCanada’s dealerships sold around 36,000 vehicles and processed around 364,000 service and collision repair orders in its 381 service bays during the period time. AutoCanada’s dealerships derive their revenues from the four inter-related business operations: new vehicle sales; used vehicle sales; parts, service and collision repair; and finance and insurance.
AutoCanada was incorporated under the Canada Business Corporations Act on October 29, 2009. It. holds interests in a number of limited partnerships, corporations, and investments in associates that each carry on the business of a franchised automobile dealership. AutoCanada has its shares trade on the Toronto Stock Exchange under the symbol “ACQ”.