AutoCanada Announces Record Second Quarter Results
Strong Financial Performance Driven by Increased Vehicle Sales and Adjusted EBITDA
August 13, 2024
AutoCanada Inc. (TSX: ACQ) today announced its financial results for the second quarter ended June 30, 2024. The company reported revenue of $16,010 million, a decrease of 8.8% compared to $17,563 million in the same period last year.
Despite the decline in revenue, AutoCanada's adjusted EBITDA2 increased by 24.3% to $941 million from $756 million in the prior year. This increase was primarily driven by higher gross profit margins and reduced operating expenses.
The company's net income for the quarter was $377 million, an increase of 288% compared to $97 million in the second quarter of 2023. This significant increase was primarily due to the higher adjusted EBITDA and a one-time gain on the sale of an investment.
"We are very pleased with our record second quarter results," said Steven Landry, President and Chief Executive Officer of AutoCanada. "Our team's hard work and dedication have resulted in strong financial performance despite the ongoing challenges in the automotive industry."
AutoCanada's positive results were driven by several factors, including increased vehicle sales, improved gross profit margins, and reduced operating expenses. The company's vehicle sales increased by 6.2% compared to the same period last year, reflecting strong demand for new and used vehicles.
Gross profit margins also improved due to a favorable sales mix and cost control initiatives. AutoCanada reduced its operating expenses by focusing on efficiency and streamlining its operations.
"We are confident that our strong financial performance will continue in the future," added Landry. "We have a solid foundation in place and are well-positioned to navigate the challenges and capitalize on the opportunities in the automotive industry."
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