EDMONTON, AB, Sept. 24,
2024 /CNW/ - AutoCanada Inc. ("AutoCanada" or
the "Company") (TSX: ACQ), a leader in Canadian automotive retail,
today announced the restructuring of its RightRide operations,
including the closure of several underperforming locations within
RightRide. This decision is part of a larger strategic shift to
optimize operations and reduce leverage.
As part of this initiative, AutoCanada has closed seven
unprofitable locations, while maintaining a select number of
performing RightRide stores. The remaining locations have been
shifted to an inventory-light business model and re-focused on the
original strategy to provide credit solutions to credit challenged
used light vehicle customers. This realignment is expected to
strengthen the Company's position in the market and return
RightRide to profitability.
"To position our business for sustained profitability, we have
made the difficult decision to close select underperforming
RightRide stores," said Paul Antony,
Executive Chairman. "By focusing on our profitable locations and
returning to our original strategy, we are confident that the
operational efficiency and profitability of our remaining stores
will improve."
Financial Highlights
Discontinued RightRide operations generated $34.9 million in sales during the trailing
12-month period ending June 30, 2024. Closure of these
locations is expected to be immediately accretive to Adjusted
EBITDA and earnings per share.
About AutoCanada
AutoCanada is a leading North American multi-location automobile
dealership group currently operating 83 franchised dealerships,
comprised of 28 brands, in eight provinces in Canada as well as a group in Illinois, USA. AutoCanada currently sells
Acura, Alfa Romeo, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge,
FIAT, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Lincoln, Mazda, Mercedes-Benz, MINI, Nissan,
Porsche, Ram, Subaru, Toyota, Volkswagen, and Volvo branded
vehicles. In addition, AutoCanada's Canadian Operations segment
currently operates 11 stand-alone collision centres within our
group of 27 collision centres. In 2023, the Company generated
revenue in excess of $6 billion and
our dealerships sold over 100,000 retail vehicles.
Additional Information
Additional information about AutoCanada is available at the
Company's website at www.autocan.ca and www.sedarplus.ca.
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 identified 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", "plan",
"seek", "may", "intend", "likely", "will", "believe" and similar
expressions) are not historical facts and are forward looking. In
particular, this press release contains forward-looking statements
with respect to, among other things, our strategic shift to
optimize operations and reduce leverage, the impact of the
restructuring on the Company's position in the market and
RightRide's operational efficiency and profitability, and the
impact of the restructuring on Adjusted EBITDA margin and earnings
per share.
AutoCanada cautions that the foregoing forward-looking
statements are subject to assumptions, risks and uncertainties and
our ability to mitigate and address those risks and uncertainties.
The Company's Annual Information Form and other documents filed
with securities regulatory authorities (accessible through the
SEDAR website at www.sedarplus.ca) describe the risks, material
assumptions and other factors that could influence actual results
and which are incorporated herein by reference. The forward-looking
statements contained in this press release speak only as of the
date hereof and AutoCanada assumes no obligation to publicly update
or revise them to reflect new events or circumstances, except as
may be required pursuant to applicable securities laws.
SOURCE AutoCanada Inc.
