August 10, 2009 / 5:41 PM / in 8 years

Units of AutoCanada jump after earnings report

* Units up 33 percent on the TSX

* Earnings fell 30 percent in the second quarter

* CFO says market was expecting lower sales volumes

TORONTO, Aug 10 (Reuters) - Units of AutoCanada Income Fund ACQ_u.TO were up 33 percent early on Monday afternoon after the auto dealership group reported results for a difficult quarter that were better than expected.

Units of the trust were up 56 Canadian cents at C$2.25 on the Toronto Stock Exchange.

AutoCanada is Canada’s only publicly traded automobile dealership group. It operates or manages 22 franchised dealerships selling brands such as Chrysler, which went through bankruptcy proceedings in the last quarter, Hyundai (005380.KS) and Volkswagen (VOWG.DE).

The Edmonton, Alberta-based company said second-quarter net earnings fell 30 percent to C$4.8 million ($4.4 million), or basic earnings per unit of C$0.239, from C$6.9 million, or C$0.335 basic earnings per unit, a year earlier.

Revenue fell 11.8 percent to C$202.3 million from a year earlier as the recession and tight credit kept would-be customers out of the showrooms.

Earnings before interest, taxes, depreciation and amortization were C$6.1 million.

Two analysts had expected, on average, revenue of C$166 million, and EBITDA of C$3.45 million, according to Reuters Estimates.

Tom Orysiuk, AutoCanada’s chief financial officer, said in an interview that while the company’s dealerships sold fewer vehicles in the quarter, they still sold more than the industry average.

“We sold a little bit more new vehicles than I think people anticipated,” he said.

“The Canadian market was down quite significantly and to be off what we were, it’s all good.”

AutoCanada recorded a 16.9 percent year-on-year drop in same store new vehicle sales in the quarter.

In all of Canada, new vehicle sales were down 15.9 percent in the second quarter, with the provinces of British Columbia and Alberta, AutoCanada’s biggest markets, down 22.1 percent and 23.9 percent respectively.

$1=$1.09 Canadian Reporting by John McCrank; editing by Peter Galloway

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below