The following is a summary of the AutoCanada, Inc. (AOCIF) Q2 2024 Earnings Call Transcript:
Financial Performance:
AutoCanada reported a decline in total sales to $1.6 billion, down 8.8% year-over-year.
Adjusted EBITDA significantly dropped to $27 million, reflecting a decrease of $67.1 million from the previous year.
The company experienced a diluted loss per share of $1.47.Significant financial impacts were attributed to the CDK outage, increased floor plan costs, US operation losses, RightRide losses, and a considerable net used inventory provision.
Business Progress:
Engaged Bain & Company to accelerate key Project Elevate initiatives.
Halted all M&A and return of capital initiatives; implemented a freeze on discretionary spending.
Reviewing strategic alternatives for all non-core and underperforming assets to enhance core dealership operations efficiency and structure.
Opportunities:
With the resolution of the CDK outage, AutoCanada is focused on initiatives to improve core dealership profitability and reduce leverage to adapt to market conditions.
Risks:
AutoCanada faces continued challenging economic and operating conditions including high floor plan costs due to elevated inventory days.
Continuing impacts from the CDK outage may still affect operations despite its resolution.
More details: AUTOCANADA INC IR
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