AutoCanada announces acquisitions, record revenue
In addition to reporting quarterly results this week, AutoCanada also announced the acquisition of two dealerships that expand its Ontario presence and adds the Porsche brand to its franchise portfolio.
The retailer said Monday it has purchased Porsche of London and Audi Windsor, two stores that generate more than $80 million in annual revenues.
“We’re excited about the addition of these high-quality Audi and Porsche dealerships, further expanding our platform in Ontario while adding brand diversity and increasing the mix of luxury dealerships within our overall portfolio," AutoCanada executive chairman Paul Antony said in a news release.
“Notably, the acquisition expands our relationship with Audi and brings Porsche into our Canadian dealership portfolio,” Antony said. “The acquisition of these dealerships advances our continued strategy of diversifying our brand and geographic mix and will provide tremendous growth opportunities as we integrate them with our strong portfolio of dealerships.”
Reporting earnings on Wednesday, AutoCanada said it generated $1.34 billion in revenue in the first quarter. That was the highest-ever Q1 revenue total for the retailer and a 38.4% year-over-year increase.
AutoCanada reported $4.3 in net income, down from $21.3 million a year ago.
Its adjusted EBITDA was $62.2 million, up from $47.2 million.
In the earnings release, Antony said: “We opened 2022 with yet another record first quarter, reflecting ongoing positive momentum and our business as a whole continues to perform better than ever.
“Our Q1 results speak to the determination, agility and strength of our team, and the trend of sustainable improvement across all areas of our business. Continued strong performance from used vehicles, F&I, and our U.S. operations were key drivers in the quarter,” he said.
“We continued to advance our acquisition strategy with the recent addition of the Audi Windsor and Porsche of London dealerships, further expanding our platform in Ontario while adding brand diversity and increasing the mix of luxury dealerships within our overall portfolio,” Antony continued.
“Looking forward to the remainder of 2022, with our newly expanded executive team in place, we will continue to build on our strong momentum and focus on our strategic growth pillars to deliver industry-leading performance and enhance shareholder returns. We remain well positioned to continue to execute on our acquisition strategy in the coming quarters with several dealerships currently being evaluated. We also expect to see continued realization of synergies from our acquisitions which will further drive our 2022 Adjusted EBITDA performance.”
On the executive front, AutoCanada said that Maryann Keller was retiring from its board of directors Thursday. The company also reiterated three executive moves it made in April: naming Jeffery Thorpe as president of Canada operations; Brian Feldman as senior vice president of Canadian operations and disruptive technologies; and Lee Wittick as senior vice president of operations and OEM relations.