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The second quarter of 2018 proved to be a “challenging” one for dealership AutoCanada, as the firm reported a net loss (attributable to shareholders) of $41.35 million. This marked a major fall from the same period in 2017, when the firm notched a net income $24.98 million.
Revenue was $880.6 million, down 1.6% compared with the second quarter of 2017. Finance and insurance generated $38.4 million revenue, a decrease of 2.4% from the same period in 2017. This accounted for 4.4% of the company’s total revenue and 25.5% of its gross profit, in line with 4.4% of revenue and up from 24.9% of gross profit in the second quarter of 2017.
“This was a challenging quarter for AutoCanada which led to a comprehensive review of our organization, governance and operating objectives. We began taking decisive actions to resolve operational issues that have long been limiting store profitability. Neither our top line performance nor our profitability were acceptable and so we acted,” said Paul Antony, who was appointed the firm’s executive chairperson on Thursday.
Last July, the firm said it has completed a strategic review aimed at exploring a range of alternatives and enhancing shareholder value.
“Our plan touches every store and every profit centre with a goal to manage costs, increase sales, and improve employee productivity. Some of our stores met some of these criteria, but even in those we can make further improvements. We will also divest those stores that do not fit with our plan and have entered into agreements to sell two dealerships,” said Michael Rawluk, who was appointed as the firm’s president last July.
