By CRM Staff
Winnipeg, Manitoba-- May 7, 2018 -- Investors are likely toasting the executives of AutoCanada after a strong first quarter statement, though the numbers also portend well for any members of the repair industry in North America.
The Winnipeg-based automobile dealership group, which represents 68 dealerships under 27 brands, saw average location revenue up 4.6 percent from this time last year, and average location profits up a percent. The news comes after the company's acquisition of Grossinger Auto Group, which is estimated to bring in hundreds of millions of dollars in additional annual revenue, and strengthens the company's position in the Midwestern U.S.
"This was a significant quarter for AutoCanada, completing our largest acquisition in corporate history," said president and chief executive officer Steven J. Landry. "With the Grossinger Auto Group acquisition, we added over $500 million in annual revenue with a well established business, gained four new brands and a cluster of dealerships in a major urban market offering a mix of domestic, import and luxury vehicles. It further diversified our geographical weighting while, broadening our mix into a new region. We have now closed the deal and have been working with the teams in Chicago and Bloomington on the integration process."
In what may come as a good sign for the collision industry as a whole, the number of service and collision repair orders declined, but the average price of those orders went up, increasing revenues 5.7 percent from the same time in 2017. Accounting for 15.5 percent of the company's total revenue and 43.6 percent of its gross profit.
"Our same store performance was very good, with improvements in every part of the business," says chief financial officer, Chris Burrows. "The combination of growing the business through acquisitions while improving our operating performance of existing dealerships shows our strategy is working and gives us good reason to be optimistic."