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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