- Revenue was
$1,420.9 million as compared to$1,539.3 million in the prior year, a decrease of (7.7)% - Net (loss) income for the period was
$(2.4) million as compared to$8.4 million in the prior year, a decrease of (128.2)% - Diluted earnings (loss) per share was
$(0.10) as compared to$0.32 in the prior year - Adjusted EBITDA1 was
$22.0 million versus$45.0 million in the prior year, a decrease of$(23.0) million
"During the first quarter, the trend of replenishing new light vehicle inventory, combined with consumer preference to buy affordable vehicles and minimize borrowing costs, resulted in continued normalization of total gross profit per new retail unit." said
"Against this backdrop of difficult market conditions,
Three-Months Ended | |||
CONSOLIDATED FINANCIAL RESULTS | 2024 | 2023 | % Change |
Revenue | 1,420,928 | 1,539,326 | (7.7) % |
Same store revenue 2 | 1,377,993 | 1,528,883 | (9.9) % |
Gross profit | 229,327 | 254,982 | (10.1) % |
Gross profit percentage 2 | 16.1 % | 16.6 % | (0.5) ppts |
Operating expenses | 211,664 | 211,601 | 0.0 % |
Net (loss) income | (2,361) | 8,384 | (128.2) % |
Basic net (loss) income per share attributable to AutoCanada shareholders | (0.10) | 0.33 | (130.3) % |
Diluted net (loss) income per share attributable to AutoCanada shareholders | (0.10) | 0.32 | (131.3) % |
Adjusted EBITDA 1 | 21,966 | 45,028 | (51.2) % |
Adjusted EBITDA Margin 1 | 1.5 % | 2.9 % | (1.4) ppts |
New retail vehicles2 sold (units) | 9,287 | 8,771 | 5.9 % |
Used retail vehicles2 sold (units) | 13,330 | 15,290 | (12.8) % |
New vehicle gross profit per retail unit 2 | 4,859 | 5,337 | (9.0) % |
Used vehicle gross profit per retail unit 2 | 1,264 | 1,317 | (4.0) % |
Parts and service ("P&S") gross profit | 83,258 | 83,231 | 0.0 % |
Collision repair ("Collision") gross profit | 14,304 | 10,645 | 34.4 % |
Finance, insurance and other ("F&I") gross profit per retail unit average2 | 3,275 | 3,462 | (5.4) % |
Normalized operating expenses before depreciation 1 | 191,321 | 194,414 | (1.6) % |
Normalized operating expenses before depreciation as a % of gross profit 1 | 83.4 % | 76.2 % | 7.2 ppts |
Floorplan financing expense | 19,617 | 15,697 | 25.0 % |
Consolidated revenue decreased due to lower used retail vehicle2 sales, and lower F&I revenues, partially offset by higher new vehicle sales, positive contributions from collision operations and recent acquisitions.
Consolidated gross profit decreased primarily due to lower used retail vehicle sales and lower contributions from F&I.
Normalized operating expenses before depreciation1, which excludes share-based compensation, transaction costs, and other non-recurring costs, declined due to lower employee costs. Normalized operating expenses before depreciation as a percentage of gross profit1 increased due to compressed gross profit.
Floorplan financing expenses increased as a result of higher interest rates and rising new inventory levels partially offset by lower used vehicle inventory levels.
Net loss for the period resulted from lower gross profits for the reasons stated above, an impairment charge in the current quarter for an asset held for sale, and higher floorplan financing expenses, partially offset by gains from the sale of two properties completed during the quarter.
Adjusted EBITDA1 for the period and adjusted EBITDA margin1 decreased primarily as a result of lower gross profits combined with higher floorplan financing expenses.
Three-Months Ended | |||
CANADIAN FINANCIAL RESULTS | 2024 | 2023 | % Change |
Revenue | 1,240,279 | 1,340,255 | (7.5) % |
Gross profit | 200,778 | 220,373 | (8.9) % |
Gross profit percentage 2 | 16.2 % | 16.4 % | (0.2) ppts |
Operating expenses | 180,056 | 177,396 | 1.5 % |
Net income | 6,681 | 12,428 | (46.2) % |
Adjusted EBITDA 1 | 25,901 | 44,566 | (41.9) % |
Adjusted EBITDA margin 1 | 2.1 % | 3.3 % | (1.2) ppts |
New retail vehicles2 sold (units) | 7,909 | 7,603 | 4.0 % |
Used retail vehicles2 sold (units) | 11,600 | 13,106 | (11.5) % |
Used-to-new retail units ratio 2 | 1.47 | 1.72 | (14.5) % |
New vehicle gross profit per retail unit 2 | 5,026 | 5,386 | (6.7) % |
Used vehicle gross profit per retail unit 2 | 1,484 | 1,431 | 3.7 % |
P&S gross profit | 69,742 | 71,738 | (2.8) % |
Collision gross profit | 14,304 | 10,645 | 34.4 % |
F&I gross profit per retail unit average 2 | 3,263 | 3,473 | (6.0) % |
Revenue and gross profit decreased as a result of lower used vehicle sales and F&I operations, partially offset by contributions from collision operations, new vehicle sales and recent acquisitions. Growth in collision gross profit was driven by strong customer demand, increased production capacity and acquisitions. Used vehicle gross profit per retail unit2 increased due to a larger inventory writedown provision recognized in the prior year. F&I gross profit per retail unit average2 decreased as a growing proportion of retail vehicle sales are being purchased without dealer financing, resulting in fewer opportunities to sell higher margin warranty and insurance products.
Adjusted EBITDA1 declined due to the reasons stated above combined with higher floorplan financing expenses.
Three-Months Ended | |||
2024 | 2023 | % Change | |
Revenue | 180,649 | 199,071 | (9.3) % |
Gross profit | 28,549 | 34,609 | (17.5) % |
Gross profit percentage 2 | 15.8 % | 17.4 % | (1.6) ppts |
Operating expenses | 31,608 | 34,205 | (7.6) % |
Net loss | (9,042) | (4,044) | (123.6) % |
Adjusted EBITDA 1 | (3,935) | 462 | (951.7) % |
Adjusted EBITDA margin 1 | (2.2) % | 0.2 % | (2.4) ppts |
New retail vehicles2 sold (units) | 1,378 | 1,168 | 18.0 % |
Used retail vehicles2 sold (units) | 1,730 | 2,184 | (20.8) % |
Used-to-new retail units ratio 2 | 1.26 | 1.87 | (32.6) % |
New vehicle gross profit per retail unit 2 | 3,904 | 5,023 | (22.3) % |
Used vehicle gross profit per retail unit 2 | (213) | 634 | (133.6) % |
P&S gross profit | 13,516 | 11,493 | 17.6 % |
F&I gross profit per retail unit average 2 | 3,353 | 3,400 | (1.4) % |
Revenue and gross profit declined due to lower used retail vehicle2 sales and lower F&I performance, partially offset by contributions from P&S operations and new retail vehicle sales. Used vehicle performance was negatively impacted by market dynamics that made sourcing optimal used vehicle inventory more challenging. P&S gross profit increased due to the successful implementation of various initiatives to improve operational effectiveness.
Adjusted EBITDA1 declined due to lower used vehicle gross profits and higher floorplan financing costs, partially offset by higher P&S gross profit.
Collision Centre Operations Highlights
Three-Months Ended | |||
Collision Centre Financial Results | 2024 | 2023 | % Change |
Revenue | 32,601 | 27,751 | 17.5 % |
Gross profit | 14,304 | 10,645 | 34.4 % |
Gross profit percentage 2 | 43.9 % | 38.4 % | 5.5 ppts |
Adjusted EBITDA 1 | 2,685 | 2,580 | 4.1 % |
Same store revenue 2 | 26,851 | 26,199 | 2.5 % |
Same store gross profit 2 | 12,092 | 9,212 | 31.3 % |
Same store gross profit percentage 2 | 45.0 % | 35.2 % | 9.8 ppts |
Collision revenue, gross profit, and gross profit percentage2 increased reflecting contributions from acquisitions and strong customer demand supported by increased Original Equipment Manufacturers ("OEM") certifications and insurance referrals.
Same store2 revenue, gross profit, and gross profit percentage2 increased for the reasons noted.
Adjusted EBITDA1 increased for the reasons noted above.
During the quarter:
- On
February 1, 2024 , the Company entered into a$75.0 million interest rate swap with a fixed one-month Canadian Dollar Offered Rate ("CDOR") of 3.77%. The swap has an initial settlement date ofFebruary 1, 2027 and may be extended by the counterparty toFebruary 1, 2029 . - On
February 1, 2024 , the Company completed the previously announced sale of two properties located inBritish Columbia andAlberta for cash consideration of$41.4 million plus customary closing adjustments. Refer to Section 5 Acquisitions, Divestitures, and Other Recent Developments for additional information. - On
March 1, 2024 , the newly built open point dealership, Maple Ridge GM, located inMaple Ridge, B.C. , commenced operations. The dealership consists of a dealership and service facility with 14 service bays and is the Company's firstGM dealership in the Metro Vancouver area. - On
March 7, 2024 , the Company announced that it had received approval from theToronto Stock Exchange ("TSX") for the renewal of its normal course issuer bid ("NCIB"). Pursuant to the NCIB,AutoCanada may purchase up to 1,329,106 common shares during the twelve-month period commencingMarch 11, 2024 and endingMarch 10, 2025 or such earlier date as the Company may complete its purchases under the NCIB. For the period endedMarch 31, 2024 , the Company has repurchased and cancelled 78,688 common shares for an average price of$24.67 and total cash consideration of approximately$1.9 million . - On
March 27, 2024 , in connection with its previously announced NCIB,AutoCanada received approval from the TSX to implement an automatic share purchase plan ("ASPP") with its designated broker. The ASPP will terminate onMarch 10, 2025 , unless terminated earlier in accordance with its terms.
After the quarter:
- For the period from
April 1, 2024 toMay 1, 2024 , under the NCIB and ASPP, the Company has repurchased and cancelled 78,000 common shares for an average price of$24.53 and total cash consideration of approximately$1.9 million . - On
April 22, 2024 , the Company entered into the fourth amended and restated credit agreement ("New Credit Facility") with the existing lending syndicate. The New Credit Facility includes the following:- Extend the maturity date to
April 22, 2027 to maintain a three-year term; - Creation of a new
$25 million capital expenditure term facility, and a corresponding$25 million accordion facility, to support the anticipated leasehold spending in the coming quarters; - Total aggregate bank facilities increased from
$1.610 billion to$1.635 billion , with no changes to the revolving, wholesale flooring, and wholesale leasing facilities; - Enhancements to the Company's ability to floor a higher proportion of used vehicles;
- Transition from CDOR to Canadian Overnight Repo Rate Average ("CORRA"); and
- Certain administrative changes.
- Extend the maturity date to
- On
May 1, 2024 , the Company completed the sale of specific land and building inAlberta for cash consideration of$10.0 million plus closing adjustments resulting in a gain of$3.4 million . The land and buildings were presented as held for sale in the Interim Financial Statements.
A conference call to discuss the results for the three months ended
This conference call will also be webcast live over the internet and can be accessed by all interested parties at the following URL: https://investors.autocan.ca/event/2024-q1-conference-call/
Information included in this press release is a summary of results. It should be read in conjunction with
All comparisons presented in this press release are between the three-month period ended
1 | See "NON-GAAP AND OTHER FINANCIAL MEASURES" below. |
2 | This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". Section 13. NON-GAAP AND OTHER FINANCIAL MEASURES of the Company's Management's Discussion & Analysis for the three-month period ended |
Condensed Interim Consolidated Statements of Comprehensive (Loss) Income
(Unaudited)
(in thousands of Canadian dollars except for share and per share amounts)
Three-month period ended | ||
$ | $ | |
Revenue (Note 5) | 1,420,928 | 1,539,326 |
Cost of sales (Note 6) | (1,191,601) | (1,284,344) |
Gross profit | 229,327 | 254,982 |
Operating expenses (Note 7) | (211,664) | (211,601) |
Operating profit before other income and expense | 17,663 | 43,381 |
Lease and other income, net | 2,549 | 3,243 |
Gain on disposal of assets, net (Note 11) | 19,267 | 5 |
Impairment of non-financial assets (Note 11 ) | (7,200) | — |
Operating profit | 32,279 | 46,629 |
Finance costs (Note 8) | (36,302) | (35,827) |
Finance income (Note 8) | 728 | 1,102 |
Other gains (losses), net | 82 | (93) |
(Loss) income for the period before taxation | (3,213) | 11,811 |
Income tax (recovery) expense (Note 9) | (852) | 3,427 |
Net (loss) income for the period | (2,361) | 8,384 |
Other comprehensive income (loss) | ||
Items that may be reclassified to profit or loss | ||
Foreign operations currency translation | 2,448 | 2,241 |
Change in fair value of cash flow hedge (Note 18) | (206) | 439 |
Income tax relating to these items | 51 | (111) |
Other comprehensive income for the period | 2,293 | 2,569 |
Comprehensive (loss) income for the period | (68) | 10,953 |
Net (loss) income for the period attributable to: | ||
(2,407) | 7,807 | |
Non-controlling interests | 46 | 577 |
(2,361) | 8,384 | |
Comprehensive (loss) income for the period attributable to: | ||
(114) | 10,376 | |
Non-controlling interests | 46 | 577 |
(68) | 10,953 | |
Net (loss) income per share attributable to | ||
Basic | (0.10) | 0.33 |
Diluted | (0.10) | 0.32 |
Weighted average shares | ||
Basic (Note 20) | 23,583,406 | 23,503,176 |
Diluted (Note 20) | 23,583,406 | 24,625,669 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca. |
Condensed Interim Consolidated Statements of Financial Position
(Unaudited)
(in thousands of Canadian dollars)
$ | $ | |
ASSETS | ||
Current assets | ||
Cash | 107,912 | 103,146 |
Trade and other receivables (Note 12) | 205,074 | 222,076 |
Inventories (Note 13) | 1,171,378 | 1,154,311 |
Current tax recoverable | 33,783 | 22,187 |
Other current assets (Note 15) | 15,216 | 15,718 |
Assets held for sale (Note 11) | 53,193 | 22,152 |
1,586,556 | 1,539,590 | |
Property and equipment (Note 14) | 372,677 | 378,269 |
Right-of-use assets | 401,379 | 405,105 |
Other long-term assets (Note 15) | 15,479 | 16,708 |
Deferred income tax | 34,080 | 35,444 |
Derivative financial instruments (Note 18) | 1,440 | 3,920 |
Intangible assets | 663,096 | 682,137 |
98,385 | 98,266 | |
3,173,092 | 3,159,439 | |
LIABILITIES | ||
Current liabilities | ||
Trade and other payables (Note 16) | 201,450 | 238,427 |
Revolving floorplan facilities (Note 17) | 1,231,546 | 1,174,595 |
Vehicle repurchase obligations | 1,139 | 1,982 |
Indebtedness (Note 17) | 14,294 | 744 |
Lease liabilities | 28,215 | 28,411 |
Redemption liabilities | 22,580 | 22,580 |
Other liabilities (Note 18) | 12,620 | 12,325 |
Liabilities held for sale (Note 11) | 1,086 | — |
1,512,930 | 1,479,064 | |
Long-term indebtedness (Note 17) | 551,557 | 562,178 |
Long-term lease liabilities | 467,265 | 469,013 |
Long-term redemption liabilities | 25,000 | 25,000 |
Derivative financial instruments (Note 18) | 1,593 | 2,219 |
Other long-term liabilities | 1,080 | 1,368 |
Deferred income tax | 51,773 | 55,768 |
2,611,198 | 2,594,610 | |
EQUITY | ||
Attributable to | 535,150 | 534,847 |
Attributable to non-controlling interests | 26,744 | 29,982 |
561,894 | 564,829 | |
3,173,092 | 3,159,439 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca. |
Condensed Interim Consolidated Statements of Cash Flows
(Unaudited)
(in thousands of Canadian dollars)
Three-month period ended | ||
$ | $ | |
Cash provided by (used in): Operating activities | ||
Net (loss) income for the period | (2,361) | 8,384 |
Adjustments for: | ||
Income tax (recovery) expense (Note 9) | (852) | 3,427 |
Finance costs (Note 8) 1 | 36,302 | 35,827 |
Depreciation of right-of-use assets (Note 7) | 8,586 | 8,104 |
Depreciation of property and equipment (Note 7) | 6,276 | 5,623 |
Gain on disposal of assets, net (Note 11) | (19,267) | (5) |
Share-based compensation (Note 19) | 2,205 | 1,861 |
Amortization of intangible assets (Note 7) | 126 | 122 |
Unrealized fair value changes on foreign exchange forward contracts (Note 18) | 2,373 | (467) |
Impairment of non-financial assets (Note 11) | 7,200 | — |
Net change in non-cash working capital (Note 23) | 20,220 | 36,616 |
60,808 | 99,492 | |
Income taxes paid | (12,567) | (6,673) |
Interest paid 1 | (41,686) | (38,563) |
Settlement of share-based awards, net | (41) | (902) |
6,514 | 53,354 | |
Investing activities | ||
Business acquisitions, net of cash acquired (Note 10) | — | (17,669) |
Purchases of property and equipment (Note 14) | (11,278) | (25,561) |
Additions to intangible assets | (341) | (426) |
Adjustments to prior year business acquisitions | (14) | — |
Proceeds on sale of property and equipment (Note 11) | 41,405 | 377 |
29,772 | (43,279) | |
Financing activities | ||
Proceeds from indebtedness | 205,822 | 129,144 |
Repayment of indebtedness | (203,214) | (125,356) |
Repayment of Executive Advance | — | 129 |
Repurchase of common shares under Normal Course Issuer Bid (Note 20) | (1,944) | |
Shares settled from treasury, net (Note 20) | (531) | 351 |
Payments for purchase of UD LP minority interest (Note 24) | (22,500) | — |
Dividends paid to non-controlling interests | (4,294) | (3,830) |
Repayment of loans by non-controlling interests | 2,236 | 3,087 |
Principal portion of lease payments, net | (7,794) | (7,268) |
(32,219) | (3,743) | |
Effect of exchange rate changes on cash | 699 | (25) |
Net increase in cash | 4,766 | 6,307 |
Cash at beginning of period | 103,146 | 108,301 |
Cash at end of period | 107,912 | 114,608 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca. |
This press release contains certain financial measures that do not have any standardized meaning prescribed by GAAP. Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned these measures should not be construed as an alternative to net income (loss) or to cash provided by (used in) operating, investing, financing activities, cash, and indebtedness determined in accordance with GAAP, as indicators of our performance. We provide these additional non-GAAP measures ("Non-GAAP Measures"), capital management measures, and supplementary financial measures to assist investors in determining the Company's ability to generate earnings and cash provided by (used in) operating activities and to provide additional information on how these cash resources are used.
Adjusted EBITDA, adjusted EBITDA margin, normalized operating expenses before depreciation, and normalized operating expenses before depreciation as a percentage of gross profit are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Investors are cautioned that these Non-GAAP Measures should not replace net earnings or loss (as determined in accordance with GAAP) as an indicator of the Company's performance, cash flows from operating, investing and financing activities or as a measure of liquidity and cash flows. The Company's methods of calculating referenced Non-GAAP Measures may differ from the methods used by other issuers. Therefore, these measures may not be comparable to similar measures presented by other issuers.
We list and define these "NON-GAAP MEASURES" below:
Adjusted EBITDA
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is an indicator of a company's operating performance over a period of time and ability to incur and service debt. Adjusted EBITDA provides an indication of the results generated by our principal business activities prior to:
- Interest expense (other than interest expense on floorplan financing), income taxes, depreciation, and amortization;
- Charges that introduce volatility unrelated to operating performance by virtue of the impact of external factors (such as share-based compensation amounts attributed to certain equity issuances as part of the Used Digital Division);
- Non-cash charges (such as impairment, recoveries, gains or losses on derivatives, revaluation of contingent consideration and revaluation of redemption liabilities);
- Charges outside the normal course of business (such as restructuring, gains and losses on dealership divestitures and real estate transactions); and
- Charges that are non-recurring in nature (such as provisions for settlement income).
The Company believes adjusted EBITDA provides improved continuity with respect to the comparison of our operating performance over a period of time.
Adjusted EBITDA Margin
Adjusted EBITDA margin is an indicator of a company's operating performance specifically in relation to our revenue performance.
The Company believes adjusted EBITDA margin provides improved continuity with respect to the comparison of our operating performance with retaining and growing profitability as our revenue and scale increases over a period of time.
Normalized Operating Expenses Before Depreciation
Normalized operating expenses before depreciation is an indicator of a company's operating expense before depreciation over a period of time, normalized for the following items:
- Transaction costs related to acquisitions, dispositions, and open points;
- Software implementation costs associated with the configuration or customization of software as a service arrangement;
- Restructuring charges relate to non-recurring organizational changes to improve the Company's profitability and overall efficiency; and
- Share-based compensation expense.
The Company believes normalized operating expenses before depreciation provides a comparison of our operating expense normalized for transactions that are not indicative of the Company's operating expenses over time. Note the current definition of normalized operating expenses before depreciation differs from previous definitions.
Normalized Operating Expenses Before Depreciation as a Percentage of Gross Profit
Normalized operating expenses before depreciation as a percentage of gross profit is a measure of a company's normalized operating expenses before depreciation over a period of time in relation to gross profit.
The Company believes this measure provides a comparison of our operating performance normalized for transactions that are not indicative of the Company's operating expenses over time.
Adjusted EBITDA and Segmented Adjusted EBITDA
The following table illustrates segmented adjusted EBITDA for the three-month period ended
Three-Months Ended | Three-Months Ended | ||||||
Total | Total | ||||||
Net income (loss) for the period | 6,681 | (9,042) | (2,361) | 12,428 | (4,044) | 8,384 | |
Add back: | |||||||
Income tax (recovery) expense | (852) | — | (852) | 3,427 | — | 3,427 | |
Depreciation of right of use assets | 7,841 | 745 | 8,586 | 7,365 | 739 | 8,104 | |
Depreciation of property and equipment | 5,698 | 578 | 6,276 | 5,144 | 479 | 5,623 | |
Amortization of intangible assets | 126 | — | 126 | — | — | — | |
Interest on long-term indebtedness | 6,265 | 3,046 | 9,311 | 6,923 | 2,490 | 9,413 | |
Lease liability interest | 7,695 | 738 | 8,433 | 7,025 | 798 | 7,823 | |
33,454 | (3,935) | 29,519 | 42,312 | 462 | 42,774 | ||
Add back: | |||||||
Impairment of non-financial assets | 7,200 | — | 7,200 | — | — | — | |
Restructuring charges | 2,000 | — | 2,000 | — | — | — | |
Loss on extinguishment of debt | — | — | — | 1,382 | — | 1,382 | |
Unrealized fair value changes in derivative instruments | 2,001 | — | 2,001 | (7) | — | (7) | |
Amortization of loss on terminated hedges | — | — | — | 817 | — | 817 | |
Unrealized foreign exchange (gains) losses | (144) | — | (144) | 67 | — | 67 | |
Software implementation costs | 657 | — | 657 | — | — | — | |
Gain on disposal of assets | (19,267) | — | (19,267) | (5) | — | (5) | |
Adjusted EBITDA | 25,901 | (3,935) | 21,966 | 44,566 | 462 | 45,028 |
The following table illustrates collision adjusted EBITDA for the three-month periods ended
Three-Months Ended | Three-Months Ended | ||||||
Collision Operations | Total | Total | |||||
Period from | |||||||
Net income for the period | 972 | — | 972 | 1,057 | — | 1,057 | |
Add back: | |||||||
Income tax recovery | — | — | — | (10) | — | (10) | |
Depreciation of right of use assets | 532 | — | 532 | 200 | — | 200 | |
Depreciation of property and equipment | 408 | — | 408 | 339 | — | 339 | |
Interest on long-term indebtedness | — | — | — | — | — | — | |
Lease liability interest | 773 | — | 773 | 994 | — | 994 | |
Adjusted EBITDA | 2,685 | — | 2,685 | 2,580 | — | 2,580 |
Adjusted EBITDA Margin
The following table illustrates segmented adjusted EBITDA margin for the three-month period ended
Three-Months Ended | Three-Months Ended | ||||||
Total | Total | ||||||
Adjusted EBITDA | 25,901 | (3,935) | 21,966 | 44,566 | 462 | 45,028 | |
Revenue | 1,240,279 | 180,649 | 1,420,928 | 1,340,255 | 199,071 | 1,539,326 | |
Adjusted EBITDA Margin | 2.1 % | (2.2) % | 1.5 % | 3.3 % | 0.2 % | 2.9 % |
Normalized Operating Expenses Before Depreciation and Normalized Operating Expenses Before Depreciation as a Percentage of Gross Profit
The following table illustrates segmented normalized operating expenses before depreciation and normalized operating expenses before depreciation as a percentage of gross profit, for the three-month periods ended
Three-Months Ended | Three-Months Ended | ||||||
Total | Total | ||||||
Operating expenses | 180,056 | 31,608 | 211,664 | 177,396 | 34,205 | 211,601 | |
Deduct: | |||||||
Depreciation of right of use assets | (7,841) | (745) | (8,586) | (7,365) | (739) | (8,104) | |
Depreciation of property and equipment | (5,698) | (578) | (6,276) | (5,144) | (479) | (5,623) | |
Amortization of intangible assets | (126) | — | (126) | (122) | — | (122) | |
Operating expenses before depreciation | 166,391 | 30,285 | 196,676 | 164,765 | 32,987 | 197,752 | |
Normalizing Items: | |||||||
Add back: | |||||||
Acquisition-related costs | (493) | — | (493) | (1,477) | — | (1,477) | |
Software implementation costs | (657) | — | (657) | — | — | — | |
Restructuring charges | (2,000) | — | (2,000) | — | — | — | |
Share-based compensation expense | (2,205) | — | (2,205) | (1,861) | — | (1,861) | |
Normalized operating expenses before depreciation | 161,036 | 30,285 | 191,321 | 161,427 | 32,987 | 194,414 | |
Gross profit | 200,778 | 28,549 | 229,327 | 220,373 | 34,609 | 254,982 | |
Normalized operating expenses before depreciation as a percentage of gross profit | 80.2 % | 106.1 % | 83.4 % | 73.3 % | 95.3 % | 76.2 % |
Forward Looking Statements
Certain statements contained in this press release are forward-looking statements and information (collectively "forward-looking statements"), within the meaning of the applicable Canadian securities legislation. We hereby provide cautionary statements identifying important factors that could cause actual results to differ materially from those projected in these forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "projection", "vision", "goals", "objective", "target", "schedules", "outlook", "anticipate", "expect", "estimate", "could", "should", "plan", "seek", "may", "intend", "likely", "will", "believe", "shall" and similar expressions) are not historical facts and are forward-looking and may involve estimates and assumptions and are subject to risks, uncertainties and other factors some of which are beyond our control and difficult to predict.
Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Therefore, any such forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this press release.
Details of the Company's material forward-looking statements are included in the Company's most recent Annual Information Form for the year ended
Further, any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by applicable law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
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