Toronto, Ontario — On November 13, AutoCanada announced its third quarter financial results, citing a revenue decrease of $29.6 million.
Other highlights from the report indicate that net income for the period was $7.1 million as compared to $22.8 million in the prior year—a decrease of $15.7 million.
Additionally, adjusted EBITDA was $53.2 million as compared to $66.7 million in the prior year, a decrease of $13.5 million.
In response to these results, Paul Antony, executive chairman, stated that “in the third quarter of 2024, our Canadian operations continued to experience softening market conditions, with affordability pressures influencing consumer behaviour and weighing on both gross profit per unit and demand for finance and insurance products. Meanwhile, our U.S. operations continued to face challenges.”
“In response to these market dynamics, we have advanced our strategic realignment,” continued Antony. “This quarter, we completed the sale of two Canadian Stellantis dealerships, streamlined our RightRide operations by closing seven underperforming locations and refocused remaining stores on tailored credit solutions for credit-challenged customers. In September, we also heightened restrictions on discretionary spending, paused acquisitions and suspended share buy-backs to prioritize core operations and efficient capital allocation.”
“These actions support our goals to enhance profitability, reduce leverage, and build a foundation for sustainable growth. Following the third quarter, we launched our transformation plan alongside Bain & Company with four pilot dealerships in Western Canada. While it is early in the transformation process, we expect to achieve $100 million in annualized run-rate operational expense savings by the end of 2025.”
Paul Antony concluded, “I want to extend my sincere gratitude to our dedicated employees and OEM partners for their resilience and continued support. Together, we are building a stronger foundation for AutoCanada’s future.”
To read the full report, click here.
