Slide 1: AutoCanada Q4 & FY 2018 Results Analyst Call
AutoCanada Q4 & FY 2018 Results Analyst Call MARCH 15, 2019
Slide 2: Forward Looking Statement; Non-GAAP Measures
FORWARD LOOKING STATEMENT Certain statements in this presentation are forward-looking in nature including with respect to, among other things, future performance, non-recurring expenses and the implementation of the Go Forward Plan. These statements include involving known and unknown risks, uncerta
Slide 3: Agenda
AGENDA 1. Business Update 2. Q4 and FY 2018 Overview 3. Update on Go Forward Plan 4. Q&A 3
Slide 4: Business Update
Business Update ; za G9 Forward Pian
Slide 5: Business Update
Business Update Go Forward Plan well underway Committed to delivering on our U.S. operational update profitability targets 5
Slide 6: Q4 and FY 2018 Financial Results
Q4 and FY 2018 Financial Results
Slide 7: Financial Results – Go Forward Plan Yielding Desired Results
Financial Results – Go Forward Plan Yielding Desired Results (C$ millions) Same Store Results Q4 2018 Q4 2017 • Challenging macro environment New Vehicle Retail Revenue 258.3 279.1 driving y-o-y new vehicle retail sales decline Used Vehicle Retail Revenue 105.2 95.0 Finance, Insurance and Other Reve
Slide 8: Financial Results – Canada and U.S. Comparative Results
Financial Results – Canada and U.S. Comparative Results Canada and U.S. Segmented Operating Results Year Ended December 31 (C$ millions) • U.S. Operations operating Canada U.S. Total expenses are significantly Total Revenues 2,778.8 372.0 3,150.8 higher than gross profit Gross Profit 459.1 48.9 508.
Slide 9: Financial Results – Fourth Quarter & Full Year 2018 Financial Highlights
Financial Results – Fourth Quarter & Full Year 2018 Financial Highlights (C$ million, except per Three-months ended December 31 Year-ended December 31 share figures) Q4 2018 Q4 2017 FY2018 FY2017 New Vehicle Sales 432.8 417.6 New Vehicle Sales 1,802.2 1,827.6 Used Vehicle Sales 193.0 175.3 Used Vehi
Slide 10: Go Forward Plan Update
Go Forward Plan Update ; 2 G9 Forward Pian
Slide 11: Go Forward Plan – Overview
Go Forward Plan – Overview Operating as a cohesive team Disposing of non-performing Optimizing all lines of business assets 11
Slide 12: Go Forward Plan – Optimizing Our Business
Go Forward Plan – Optimizing Our Business Finance & Insurance • New program launched October 5th • Placing new focus on warranty sales • New product offering launched and white labeled under AutoCanada’s name • Initiatives have improved gross margins by 870 basis points y-o-y • Division performing i
Slide 13: Optimizing Our Business (Cont'd): Special Finance
Go Forward Plan – Optimizing Our Business (Cont’d) Special Finance • New Special Finance Division launched • 35% of all credit applications nationally do not qualify for traditional financing • By the end of March, 14 functional teams across the country will be live • Launched new online presence ww
Slide 14: Optimizing Our Business (Cont'd): Wholesale and Collision
Go Forward Plan – Optimizing Our Business (Cont’d) New Wholesale Division • Will capitalize on arbitrage opportunities for used cars • Initial units sold in the US in November Collision • Initial focus is on optimizing division and existing collision centers • New supply contracts negotiated • Looki
Slide 15: Optimizing Our Business (Cont'd): Long Term Initiatives
Go Forward Plan – Optimizing Our Business (Cont’d) LONG TERM INITIATIVES: 1. Used Vehicles • Long-term goal is to sell one used vehicle for every new vehicle sold • Launched Rooftop 50: sell 50 used cars per month • Contributes to parts, service, collision and F&I income 2. Service Bay Occupancy • L
Slide 16: Go Forward Plan – Driving in the Right Direction
Go Forward Plan – Driving in the Right Direction Asset Divestitures • Nov 2018: North Edmonton Kia in Edmonton, AB - C$10.2M • Dec 2018: Courtesy Mitsubishi in Calgary, AB - C$2.5M • March 2019: Toronto Dodge in Toronto, ON - C$5.0M Sale-Leaseback Transactions • Dec 2018: Four properties with Capita
Slide 17: Q&A
Q&A Go Forward Plan ‘Change > Accelerate » Succeed »Grow