The following is a summary of the AutoCanada Inc. (AOCIF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• AutoCanada reported Q1 sales of $1.4 billion, a decrease of 7.7% compared to the same period in 2023, primarily due to lower used vehicle sales volume.

• An adjusted EBITDA of $22 million was reported, signifying a decline of 51.2% year-over-year.

• The quarter brought a diluted loss per share of $0.10 and a decrease of $4.6 million in employee expenses.

• The net funded debt to bank EBITDA covenant ratio stood at 2.79.

• Despite strategic initiatives, the company expects short-term macroeconomic challenges to continue.

Business Progress:

• AutoCanada is implementing Project Elevate, a strategic plan focused on enhancing efficiency and improving market position.

• The company has successfully restructured its US operations and brought down the average days reconditioning from 63 to 8.3.

• The Collision repair division, to be reported separately, showed a same-store gross profit increase of 31.3%.

• With high car prices and a lack of fresh trades impacting inventory, AutoCanada is working on acquisition efficiencies to improve used car inventory.

• A merger with Kijiji F&I and ICO applications is also underway to diversify sales.

• As part of Project Elevate, contracts with vendors are being reassessed for cost savings, and a shared services and HRIS system infrastructure is being developed for better governance and operation.

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