- Revenue was
$1,483.8 million as compared to$1,388.2 million in the prior year, an increase of 6.9% - Net (loss) income for the period was
$(22.6) million versus$14.8 million in the prior year, a decrease of (252.8)% - Diluted earnings per share was
$(0.81) , a decrease of$(1.33) from$0.52 in the prior year - Consolidated ownership of the Used Digital Division, recognizing
$36.7 million of share-based compensation expense and$1.8 million of related transaction costs in operating expenses, resulting in a$1.50 reduction to diluted earnings per share - Adjusted EBITDA1 was
$46.4 million versus$51.0 million in the prior year, a decrease of$(4.6) million
"During the fourth quarter,
"Significant progress has been made on Project Elevate initiatives since its launch at the end of August, with key management changes announced in
Fourth Quarter Key Highlights and Recent Developments
Three-Months Ended | |||
CONSOLIDATED FINANCIAL RESULTS | 2023 | 2022 | % Change |
Revenue | 1,483,794 | 1,388,206 | 6.9 % |
Gross profit | 257,842 | 242,622 | 6.3 % |
Gross profit percentage2 | 17.4 % | 17.5 % | (0.1) ppts |
Operating expenses | 250,816 | 197,397 | 27.1 % |
Net (loss) income | (22,630) | 14,810 | (252.8) % |
Basic net (loss) income per share attributable to | (0.84) | 0.55 | (252.7) % |
Diluted net (loss) income per share attributable to | (0.81) | 0.52 | (255.8) % |
Adjusted EBITDA1 | 46,437 | 51,043 | (9.0) % |
Adjusted EBITDA Margin1 | 3.1 % | 3.7 % | (0.6) ppts |
New retail vehicles2 sold (units) | 9,580 | 8,100 | 18.3 % |
Used retail vehicles2 sold (units) | 13,777 | 14,418 | (4.4) % |
Used-to-new retail units ratio2 | 1.44 | 1.78 | (19.1) % |
New vehicle gross profit per retail unit2 | 5,439 | 5,833 | (6.8) % |
Used vehicle gross profit per retail unit2 | 1,548 | 897 | 72.6 % |
Finance, insurance and other ("F&I") gross profit per retail unit average2 | 3,299 | 3,596 | (8.3) % |
New vehicle gross profit percentage2 | 8.7 % | 9.5 % | (0.8) ppts |
Used vehicle gross profit percentage2 | 3.4 % | 2.8 % | 0.6 ppts |
Parts, service and collision repair ("PS&CR") gross profit percentage2 | 53.4 % | 56.8 % | (3.4) ppts |
F&I gross profit percentage2 | 93.5 % | 95.0 % | (1.5) ppts |
LIQUIDITY2 | |||
Cash | 103,146 | 108,301 | (4.8) % |
Revolving floorplan facilities | 1,174,595 | 992,254 | 18.4 % |
Indebtedness | 562,922 | 555,128 | 1.4 % |
Consolidated revenue increased due to higher new vehicle sales, contributions from PS&CR and recent acquisitions offset by lower used vehicle sales in
Consolidated gross profit increased as a result of contributions from new vehicle sales, PS&CR operations and recent acquisitions.
Operating expenses increased primarily as a result of share-based compensation expenses related to the consolidation of ownership of Used Digital Division. Normalized operating expenses before depreciation1, which excludes stock based compensation, transaction costs, and other non-recurring costs, increased as a result of recent acquisitions.
Floorplan financing expenses increased as a result of higher interest rates and rising new inventory levels partially offset by lower used vehicle inventory levels.
The net loss for the period resulted from higher gross profits and operating expenses for the reasons stated above, including share-based compensation expense related to the ownership consolidation of the Used Digital Division, combined with higher floorplan financing expenses.
Adjusted EBITDA1 for the period and adjusted EBITDA margin1 decreased primarily as result of higher operating expenses combined with increased flooring expenses.
Canadian Operations Highlights
Three-Months Ended | |||
CANADIAN FINANCIAL RESULTS | 2023 | 2022 | % Change |
REVENUE | |||
New vehicles | 524,650 | 445,288 | 17.8 % |
Used vehicles | 505,065 | 511,154 | (1.2) % |
Parts, service and collision repair | 178,080 | 146,245 | 21.8 % |
Finance, insurance and other | 69,957 | 70,025 | (0.1) % |
Total revenue | 1,277,752 | 1,172,712 | 9.0 % |
GROSS PROFIT | |||
New vehicles | 45,007 | 40,781 | 10.4 % |
Used vehicles | 22,176 | 19,665 | 12.8 % |
Parts, service and collision repair | 93,375 | 82,008 | 13.9 % |
Finance, insurance and other | 64,576 | 65,863 | (2.0) % |
Total gross profit | 225,134 | 208,317 | 8.1 % |
Gross profit percentage2 | 17.6 % | 17.8 % | (0.2) ppts |
Operating expenses | 218,699 | 166,513 | 31.3 % |
Net (loss) income | (16,020) | 15,043 | (206.5) % |
Adjusted EBITDA1 | 47,945 | 46,027 | 4.2 % |
New retail vehicles2 sold (units) | 8,161 | 7,112 | 14.7 % |
Used retail vehicles2 sold (units) | 11,805 | 11,689 | 1.0 % |
New vehicle gross profit per retail unit2 | 5,401 | 5,598 | (3.5) % |
Used vehicle gross profit per retail unit2 | 1,948 | 1,190 | 63.7 % |
F&I gross profit per retail unit average2 | 3,234 | 3,503 | (7.7) % |
New vehicle gross profit percentage2 | 8.6 % | 9.2 % | (0.6) ppts |
Used vehicle gross profit percentage2 | 4.4 % | 3.8 % | 0.6 ppts |
PS&CR gross profit percentage2 | 52.4 % | 56.1 % | (3.7) ppts |
F&I gross profit percentage2 | 92.3 % | 94.1 % | (1.8) ppts |
Revenue increased as a result of contributions from new vehicle sales, higher PS&CR operating performance, and recent acquisitions, offset by declines in used vehicle revenues. Growth in new vehicle revenue was driven by higher new retail vehicle sales volumes and higher average selling prices. PS&CR gross profit increased as a result of strong customer demand for maintaining existing vehicles and recent acquisitions. F&I gross profit per retail unit average2 decreased reflecting a growing proportion of retail vehicle sales being purchased without dealer financing, resulting in fewer opportunities to sell higher margin warranty and insurance products.
Adjusted EBITDA1 was up due to contributions from stronger new vehicle sales and PS&CR operations, and recent acquisitions, partially offset by higher operating expenses and floorplan financing expenses.
Three-Months Ended | |||
2023 | 2022 | % Change | |
REVENUE | |||
New vehicles | 81,268 | 62,720 | 29.6 % |
Used vehicles | 87,925 | 115,243 | (23.7) % |
Parts, service and collision repair | 24,368 | 22,299 | 9.3 % |
Finance, insurance and other | 12,481 | 15,232 | (18.1) % |
Total revenue | 206,042 | 215,494 | (4.4) % |
GROSS PROFIT | |||
New vehicles | 7,721 | 7,437 | 3.8 % |
Used vehicles | (2,172) | (1,890) | (14.9) % |
Parts, service and collision repair | 14,679 | 13,653 | 7.5 % |
Finance, insurance and other | 12,480 | 15,105 | (17.4) % |
Total gross profit | 32,708 | 34,305 | (4.7) % |
Gross profit percentage2 | 15.9 % | 15.9 % | — ppts |
Operating expenses | 32,117 | 30,884 | 4.0 % |
Net loss | (6,610) | (233) | (2736.9) % |
Adjusted EBITDA1 | (1,508) | 5,016 | (130.1) % |
New retail vehicles2 sold (units) | 1,419 | 988 | 43.6 % |
Used retail vehicles2 sold (units) | 1,972 | 2,729 | (27.7) % |
New vehicle gross profit per retail unit2 | 5,657 | 7,527 | (24.8) % |
Used vehicle gross profit per retail unit2 | (845) | (359) | (135.4) % |
F&I gross profit per retail unit average2 | 3,680 | 4,064 | (9.4) % |
New vehicle gross profit percentage2 | 9.5 % | 11.9 % | (2.4) ppts |
Used vehicle gross profit percentage2 | (2.5) % | (1.6) % | (0.9) ppts |
PS&CR gross profit percentage2 | 60.2 % | 61.2 % | (1.0) ppts |
F&I gross profit percentage2 | 100.0 % | 99.2 % | 0.8 ppts |
Revenue and gross profit declined due to lower used vehicle sales and lower F&I performance offset by contributions from PS&CR operations and new vehicle sales. Used vehicle revenue declines reflect lower sales volumes which also impacted F&I through lower warranty and insurance sales. Used vehicle performance was negatively impacted by historical inventory procurement and management processes as well as market dynamics that made sourcing optimal used vehicle inventory more challenging. New vehicle sales volumes increased significantly offset by lower average selling prices as new inventory levels continued to normalize.
Adjusted EBITDA1 declined due to lower used vehicle and F&I gross profit coupled with higher operating expenses and floorplan financing costs.
Other Recent Developments
During the quarter:
- On
November 16, 2023 , the Company announced that it had been awarded the rights to open a Porsche Classic & Service Centre (the "Centre") inWindsor, Ontario . The Centre will be the first Porsche Classic centre inCanada and will be a Genuine Porsche service and parts centre. It is expected to be completed in the fourth quarter of 2025. - On
November 17, 2023 , the Company entered into a$25.0 million forward interest rate swap with a deferred start date ofDecember 1, 2023 and fixed one-month Canadian Dollar Offered Rate ("CDOR") of 4.10%. The swap has an initial settlement date ofDecember 1, 2026 and may be extended by the counterparty toDecember 1, 2028 . - On
December 27, 2023 , iAFinancial Group ("iA") invested$25 million for a 10% common equity interest inAutoCanada's business unit that will sell finance, insurance and warranty products to buyers of private owner-sold vehicles onKijiji's online marketplace ("Online C2C F&I Business"). The Company also purchased the 19.1% interest in its Used Digital Division from the Executive Chair of the Company and Other Sellers (collectively the "Minority Interest Holders") for$23.9 million in cash, funded from the proceeds of the iA investment and$7.5 million in share units issuable to the Executive Chair and issuance of performance share units ("PSUs") to the Other Sellers. The share units and PSUs will be settled through the delivery ofAutoCanada shares acquired in the market. The Minority Interest Holders have agreed to use their after-tax cash proceeds to purchaseAutoCanada shares in the market.
After the quarter:
- On
February 1, 2024 , the Company entered into a$75.0 million interest rate swap with a fixed one-month CDOR of 3.77%. The swap has an initial settlement date ofFebruary 1, 2027 and may be extended by the counterparty toFebruary 1, 2029 . - On
February 1, 2024 , the Company completed the previously announced sale of two properties located inBritish Columbia andAlberta toCanadaOne Auto Group for cash consideration of$41.4 million plus customary closing adjustments. The land and buildings were presented onAutoCanada's balance sheet as assets held for sale as atDecember 31, 2023 . - On
March 1, 2024 , the newly built open point dealership, Maple Ridge GM, located inMaple Ridge, B.C. , commenced operations. The dealership consists of a dealership and service facility with 14 service bays and is the Company's firstGM dealership in the Metro Vancouver area.
Renewal of Normal Course Issuer Bid
The renewal of the NCIB follows on the conclusion of
The number of common shares authorized for purchase under the NCIB represents 10% of
Although the Company has a present intention to acquire its common shares pursuant to the NCIB, the Company will not be obligated to make any purchases and purchases may be suspended by the Company at any time. The Company reserves the right to terminate the NCIB earlier if it feels it is appropriate to do so.
Conference Call
A conference call to discuss the results for the three months ended
This conference call will also be webcast live over the internet and can be accessed by all interested parties at the following URL: https://investors.autocan.ca/event/2023-q4-conference-call/
MD&A and Financial Statements
Information included in this press release is a summary of results. It should be read in conjunction with
All comparisons presented in this press release are between the three-month period ended December 31, 2023 and the three-month period ended
1 | See "NON-GAAP AND OTHER FINANCIAL MEASURES" below. |
2 | This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". Section 14. NON-GAAP AND OTHER FINANCIAL MEASURES of the Company's Management's Discussion & Analysis for the three-month period and year ended |
Consolidated Statements of Comprehensive Income
For the Years Ended
(in thousands of Canadian dollars except for share and per share amounts)
$ |
$ | |
Revenue (Note 6) | 6,436,803 | 6,040,619 |
Cost of sales (Note 7) | (5,315,016) | (4,997,746) |
Gross profit | 1,121,787 | 1,042,873 |
Operating expenses (Note 8) | (915,263) | (811,018) |
Operating profit before other income | 206,524 | 231,855 |
Lease and other income (Note 10) | 13,156 | 14,301 |
Gain (loss) on disposal of assets, net (Note 10) | 422 | (296) |
Recoveries of non-financial assets (Note 19) | 3,538 | 8,691 |
Operating profit | 223,640 | 254,551 |
Finance costs (Note 11) | (145,939) | (131,478) |
Finance income (Note 11) | 3,346 | 4,144 |
Gain (loss) on redemption liabilities (Note 14) | 3,639 | (4,829) |
Other (losses) gains, net | (321) | 1,496 |
Income for the year before taxation | 84,365 | 123,884 |
Income tax expense (Note 12) | 30,584 | 32,824 |
Net income for the year | 53,781 | 91,060 |
Other comprehensive income (loss) | ||
Items that may be reclassified to profit or loss | ||
Foreign operations currency translation | 6,489 | 6,505 |
Change in fair value of cash flow hedge (Note 24) | 1,800 | 6,650 |
Income tax relating to these items | (458) | (1,688) |
Other comprehensive income for the year, net of tax | 7,831 | 11,467 |
Comprehensive income for the year | 61,612 | 102,527 |
Net income for the year attributable to: | ||
50,490 | 85,436 | |
Non-controlling interests | 3,291 | 5,624 |
53,781 | 91,060 | |
Comprehensive income for the year attributable to: | ||
58,321 | 96,903 | |
Non-controlling interests | 3,291 | 5,624 |
61,612 | 102,527 | |
Net income per share attributable to | ||
Basic | 2.14 | 3.28 |
Diluted | 2.06 | 3.03 |
Weighted average shares | ||
Basic (Note 29) | 23,561,236 | 26,050,206 |
Diluted (Note 29) | 24,450,681 | 28,233,882 |
The accompanying notes are an integral part of these consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca. |
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
$ |
$ | |
ASSETS | ||
Current assets | ||
Cash | 103,146 | 108,301 |
Trade and other receivables (Note 15) | 222,076 | 217,790 |
Inventories (Note 16) | 1,154,311 | 979,540 |
Current tax recoverable | 22,187 | — |
Other current assets (Note 20) | 15,718 | 10,142 |
Assets held for sale (Note 17) | 22,152 | — |
1,539,590 | 1,315,773 | |
Property and equipment (Note 18) | 378,269 | 345,592 |
Right-of-use assets (Note 23) | 405,105 | 396,369 |
Other long-term assets (Note 20) | 16,708 | 17,298 |
Deferred income tax (Note 12) | 35,444 | 40,984 |
Derivative financial instruments (Note 24) | 3,920 | 4,970 |
Intangible assets (Note 19) | 682,137 | 659,261 |
98,266 | 78,084 | |
3,159,439 | 2,858,331 | |
LIABILITIES | ||
Current liabilities | ||
Trade and other payables (Note 21) | 238,427 | 229,696 |
Revolving floorplan facilities (Note 22) | 1,174,595 | 992,254 |
Current tax payable | — | 13,952 |
Vehicle repurchase obligations (Note 25) | 1,982 | 2,277 |
Indebtedness (Note 22) | 744 | 777 |
Lease liabilities (Note 23) | 28,411 | 27,766 |
Redemption liabilities (Note 14) | 22,580 | 26,219 |
Other liabilities (Note 26) | 12,325 | 4,338 |
1,479,064 | 1,297,279 | |
Long-term indebtedness (Note 22) | 562,178 | 554,351 |
Long-term lease liabilities (Note 23) | 469,013 | 457,111 |
Long-term redemption liabilities (Note 14) | 25,000 | 1,050 |
Derivative financial instruments (Note 24) | 2,219 | 1,939 |
Other long-term liabilities (Note 26) | 1,368 | 8,894 |
Deferred income tax (Note 12) | 55,768 | 50,910 |
2,594,610 | 2,371,534 | |
EQUITY | ||
Attributable to | 534,847 | 457,899 |
Attributable to non-controlling interests | 29,982 | 28,898 |
564,829 | 486,797 | |
3,159,439 | 2,858,331 |
The accompanying notes are an integral part of these consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca. |
Consolidated Statements of Cash Flows
For the Years Ended
(in thousands of Canadian dollars)
$ |
$ | |
Cash provided by (used in): Operating activities | ||
Net income for the year | 53,781 | 91,060 |
Adjustments for: | ||
Income tax expense (Note 12) | 30,584 | 32,824 |
Finance costs (Note 11) 1 | 145,939 | 131,478 |
Depreciation of right-of-use assets (Note 23) | 33,443 | 30,781 |
Depreciation of property and equipment (Note 18) | 25,030 | 20,852 |
Amortization of intangible assets (Note 19) | 529 | 374 |
(Gain) loss on disposal of assets and lease terminations, net (Note 10) | (422) | 296 |
Share-based compensation (Note 28) | 6,485 | 5,410 |
Share-based compensation - Used Digital Division (Note 14, 28) | 36,725 | 391 |
Unrealized fair value changes on foreign exchange forward contracts (Note 24) | (2,267) | (18) |
Revaluation of redemption liabilities (Note 14) | (3,639) | 4,829 |
Recoveries of non-financial assets (Note 19) | (3,538) | (8,691) |
Net change in non-cash working capital (Note 34) 1 | (3,552) | (28,089) |
319,098 | 281,497 | |
Income taxes paid | (58,371) | (33,114) |
Interest paid 1 | (140,292) | (97,144) |
Settlement of share-based awards, net | (901) | (3,641) |
119,534 | 147,598 | |
Investing activities | ||
Business acquisitions, net of cash acquired (Note 13) | (47,027) | (174,882) |
Purchases of property and equipment (Note 18) | (77,416) | (52,667) |
Additions to intangible assets (Note 19) | (2,102) | — |
Settlement of prior year business acquisitions | 817 | (598) |
Proceeds on sale of property and equipment | 299 | 123 |
(125,429) | (228,024) | |
Financing activities | ||
Proceeds from indebtedness | 674,560 | 1,010,006 |
Repayment of indebtedness | (669,334) | (770,064) |
Repayment of executive advance (Note 33) | 1,624 | 376 |
Repurchase of common shares under Normal Course Issuer Bid (Note 29) | — | (56,605) |
Shares settled from treasury (Note 29) | 353 | 1,768 |
Proceeds from exercise of stock options, net | 279 | 8,573 |
Settlement of Substantial Issuer Bids (Note 29) | — | (82,542) |
Dividends paid to non-controlling interests | (3,595) | (3,247) |
Proceeds from sale of equity interest in 15154871 | 25,000 | — |
Settlement of redemption liabilities | (1,444) | — |
Repayment of loan by non-controlling interests | 3,083 | 2,162 |
Principal portion of lease payments (Note 23) | (28,828) | (27,214) |
1,698 | 83,213 | |
Effect of exchange rate changes on cash | (958) | 3,034 |
Net (decrease) increase in cash | (5,155) | 5,821 |
Cash at beginning of year | 108,301 | 102,480 |
Cash at end of year | 103,146 | 108,301 |
1 | Certain prior year figures have been reclassified to conform to the current year presentation (Note 36) |
The accompanying notes are an integral part of these consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca. |
NON-GAAP AND OTHER FINANCIAL MEASURES
This press release contains certain financial measures that do not have any standardized meaning prescribed by GAAP. Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned these measures should not be construed as an alternative to net income (loss) or to cash provided by (used in) operating, investing, financing activities, cash, and indebtedness determined in accordance with GAAP, as indicators of our performance. We provide these additional non-GAAP measures ("Non-GAAP Measures"), capital management measures, and supplementary financial measures to assist investors in determining the Company's ability to generate earnings and cash provided by (used in) operating activities and to provide additional information on how these cash resources are used.
Adjusted EBITDA, adjusted EBITDA margin, and normalized operating expenses before depreciation are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Investors are cautioned that these Non-GAAP Measures should not replace net earnings or loss (as determined in accordance with GAAP) as an indicator of the Company's performance, cash flows from operating, investing and financing activities or as a measure of liquidity and cash flows. The Company's methods of calculating referenced Non-GAAP Measures may differ from the methods used by other issuers. Therefore, these measures may not be comparable to similar measures presented by other issuers.
We list and define these "NON-GAAP MEASURES" below:
Adjusted EBITDA
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is an indicator of a company's operating performance over a period of time and ability to incur and service debt. Adjusted EBITDA provides an indication of the results generated by our principal business activities prior to:
- Interest expense (other than interest expense on floorplan financing), income taxes, depreciation, and amortization;
- Charges that introduce volatility unrelated to operating performance by virtue of the impact of external factors (such as share-based compensation amounts attributed to certain equity issuances as part of the Used Digital Division);
- Non-cash charges (such as impairment, recoveries, gains or losses on derivatives, revaluation of contingent consideration and revaluation of redemption liabilities);
- Charges outside the normal course of business (such as restructuring, gains and losses on dealership divestitures and real estate transactions); and
- Charges that are non-recurring in nature (such as provisions for settlement income).
The Company believes adjusted EBITDA provides improved continuity with respect to the comparison of our operating performance over a period of time.
Adjusted EBITDA Margin
Adjusted EBITDA margin is an indicator of a company's operating performance specifically in relation to our revenue performance.
The Company believes adjusted EBITDA margin provides improved continuity with respect to the comparison of our operating performance with retaining and growing profitability as our revenue and scale increases over a period of time.
Normalized Operating Expenses Before Depreciation
Normalized operating expenses before depreciation is an indicator of a company's operating expense before depreciation over a period of time, normalized for the following items:
- Transaction costs related to acquisitions, dispositions, and open points;
- Software implementation costs associated with the configuration or customization of software as a service arrangement; and
- Share-based compensation expense.
The Company believes normalized operating expenses before depreciation provides a comparison of our operating expense normalized for transactions that are not indicative of the Company's operating expenses over time. Note the current definition of normalized operating expenses before depreciation differs from previous definitions.
NON-GAAP AND OTHER FINANCIAL MEASURES RECONCILIATIONS
Adjusted EBITDA and Segmented Adjusted EBITDA
The following table illustrates the adjusted EBITDA and segmented adjusted EBITDA for the three-month period ended
Three-Months Ended December | Three-Months Ended December | ||||||
Total | Total | ||||||
Net (loss) income for the period | (16,020) | (6,610) | (22,630) | 15,043 | (233) | 14,810 | |
Add back: | |||||||
Income tax expense (recovery) | 4,546 | (11) | 4,535 | 9,908 | 86 | 9,994 | |
Depreciation of right of use assets | 7,943 | 743 | 8,686 | 7,658 | 668 | 8,326 | |
Depreciation of property and equipment | 5,787 | 672 | 6,459 | 5,168 | 496 | 5,664 | |
Amortization of intangible assets 1 | 128 | — | 128 | 374 | — | 374 | |
Interest on long-term indebtedness | 7,020 | 2,838 | 9,858 | 5,100 | 3,021 | 8,121 | |
Lease liability interest | 7,630 | 840 | 8,470 | 7,305 | 978 | 8,283 | |
17,034 | (1,528) | 15,506 | 50,556 | 5,016 | 55,572 | ||
Add back: | |||||||
Recoveries of non-financial assets | (3,538) | — | (3,538) | (8,691) | — | (8,691) | |
Share-based compensation - Used Digital Division | 36,725 | — | 36,725 | 391 | — | 391 | |
(Gain) loss on redemption liabilities | (3,639) | — | (3,639) | 4,829 | — | 4,829 | |
Unrealized fair value changes in derivative | (1,437) | — | (1,437) | (2,496) | — | (2,496) | |
Amortization of loss on terminated hedges | 616 | — | 616 | 817 | — | 817 | |
Unrealized foreign exchange losses | 108 | — | 108 | 497 | — | 497 | |
Used Digital Division transaction costs | 1,774 | — | 1,774 | — | — | — | |
Software implementation costs | 677 | — | 677 | — | — | — | |
(Gain) loss on disposal of assets | (375) | 20 | (355) | 124 | — | 124 | |
Adjusted EBITDA | 47,945 | (1,508) | 46,437 | 46,027 | 5,016 | 51,043 |
1 | The Company has revised the comparative figure to back out |
Adjusted EBITDA Margin
The following table illustrates adjusted EBITDA margin for the three-month period ended
2023 | 2022 | |
Adjusted EBITDA 1 | 46,437 | 51,043 |
Revenue | 1,483,794 | 1,388,206 |
Adjusted EBITDA Margin | 3.1 % | 3.7 % |
1 | The Company has revised the comparative figure to back out |
Normalized Operating Expenses Before Depreciation
The following table illustrates segmented normalized operating expenses before depreciation for the three-month periods ended
Three-Months Ended December | Three-Months Ended December | ||||||
Total | Total | ||||||
Operating expenses | 218,699 | 32,117 | 250,816 | 166,513 | 30,884 | 197,397 | |
Deduct: | |||||||
Depreciation of right of use assets | (7,943) | (743) | (8,686) | (7,658) | (668) | (8,326) | |
Depreciation of property and equipment | (5,787) | (672) | (6,459) | (5,168) | (496) | (5,664) | |
Amortization of intangible assets | (128) | — | (128) | (374) | — | (374) | |
Operating expenses before depreciation | 204,841 | 30,702 | 235,543 | 153,313 | 29,720 | 183,033 | |
Normalizing Items: | |||||||
Add back: | |||||||
Acquisition-related costs (including Used | (2,415) | — | (2,415) | (2,239) | — | (2,239) | |
Software implementation costs | (677) | — | (677) | — | — | — | |
Share-based compensation expense | (38,533) | — | (38,533) | (2,084) | — | (2,084) | |
Normalized operating expenses before | 163,216 | 30,702 | 193,918 | 148,990 | 29,720 | 178,710 |
Forward Looking Statements
Certain statements contained in this press release are forward-looking statements and information (collectively "forward-looking statements"), within the meaning of the applicable Canadian securities legislation. We hereby provide cautionary statements identifying important factors that could cause actual results to differ materially from those projected in these forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "projection", "vision", "goals", "objective", "target", "schedules", "outlook", "anticipate", "expect", "estimate", "could", "should", "plan", "seek", "may", "intend", "likely", "will", "believe", "shall" and similar expressions) are not historical facts and are forward-looking and may involve estimates and assumptions and are subject to risks, uncertainties and other factors some of which are beyond our control and difficult to predict.
Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Therefore, any such forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this press release.
Details of the Company's material forward-looking statements are included in the Company's most recent Annual Information Form for the year ended
Further, any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by applicable law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
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