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AutoCanada Inc T.ACQ

Alternate Symbol(s):  AOCIF

AutoCanada Inc. is a Canada-based multi-location franchised automobile dealership company. It offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services. Its segments include Canadian Operations and U.S. Operations. It operates about 82 franchised dealerships, comprised of 28 brands, in eight provinces in Canada as well as a group in Illinois, United States. It sells Acura, Alfa Romeo, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, FIAT, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Lincoln, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, Toyota, Volkswagen, and Volvo branded vehicles. Its Canadian Operations segment operates three used vehicle dealerships and one used vehicle auction business supporting the Used Digital Division, 13 RightRide division locations, and 11 stand-alone collision centers within its group of 27 collision centers.


TSX:ACQ - Post by User

Bullboard Posts
Comment by dpunt32on Nov 07, 2014 8:43am
286 Views
Post# 23105768

RE:Also, Bashtards

RE:Also, BashtardsBaystreet Brian...sure they have growth but its all been priced in given how the stock has increased...even the bullish analysts will have a tough time defending this...here is some from RBC First impression Our view: We may see ACQ shares give back some of their recent gains on these results. The shares have rebounded well since the Oct. 15th lows (up 39%, including +6% on Thursday). Q3 revenue was inline, though margins were lower on a weaker new/fleet sales mix. New car retail unit sales were up only 4% vs. Canadian auto sales up ~11%. Recall that missing EPS expectations by ~0.04 in Q2 contributed to a pullback in the shares Bigger picture, we remain impressed with the growth being delivered by ACQ. Same store sales were up 9%, acquisition activity remains robust (14 dealers added so far in 2014), and acquisition guidance was maintained. Q3/14 showed strong growth, but earnings were slightly below expectations: AutoCanada reported revenue of $733.4MM (82.0% Y/Y growth), essentially in-line with our forecast of $739.8MM and consensus $727MM. EBITDA of $31.3MM was below our $32.1MM forecast. Adj. EPS of $0.71 was also shy of our $0.75 forecast and consensus $0.74. Gross Margins were below our forecast: Gross Margins of 16.3% were below our forecast of 17.1%, with divisional margins being lower than expected in new vehicles, used vehicles, and parts & service. Notably, these figures do vary considerably Q/Q. Another dividend increase (now 15 qtrs in a row): Up $0.01 to $0.25/qtr. Guidance on dealer acquisitions maintained: Management reiterated their guidance of acquiring an additional 5-7 dealers by the end of May, 2015 (it appears this does not account for the BMW/MINI acquisition announced last night). Our base forecast reflects 5 further (unannounced) acquisitions through Q2/15E. Management re-alignment & new director: To better accommodate ACQ's larger corporate footprint and growth strategy, Pat Priestner will move to an Executive Chairman role, focusing on strategic initiatives, acquisitions, and key relationships. Tom Orysiuk will become the CEO in addition to President. Also, Mr. Barry James (previously with PWC) will join the board. Key topics for the conference call: New retail unit sales growth, segment margin expectations, changes in management responsibilities, acquisition pipeline and outlook. The conference call is scheduled for 12:00 pm ET on November 7th, 2014; dial-in (888) 231-8191. Priced .
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