AutoCanada Q2 2024 Earnings Call Transcript

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Provided by Quartr
August 13, 2024

Key Takeaways

  • Q2 sales fell 8.8% to $1.6 billion, adjusted EBITDA dropped to $27 million (down $67.1 million year-over-year) and diluted loss per share was $1.47, driven by a CDK outage, higher floorplan costs, mounting Stellantis inventory and broader economic headwinds.
  • AutoCanada has engaged Bain & Company to fast-track Project Elevate, halted all M&A and capital return programs, frozen discretionary spending and is reviewing non-core and underperforming assets to prioritize deleveraging and core dealership profitability.
  • Canadian revenue declined 9% to $1.4 billion with adjusted EBITDA down 63.7% to $32.4 million, while U.S. revenue fell 7.9% to $191.2 million and delivered a $5.4 million EBITDA loss, reflecting a $12.7 million used-vehicle provision and continued operational headwinds in U.S. and RightRide segments.
  • Management secured covenant relief by amending the net funded debt/EBITDA ratio to 4.5x through September 29, 2024, with $185 million drawn on a $375 million revolving credit facility and ongoing collaboration with lenders.
  • Sam Cochran joined as CFO to steer the company through transformational change, as leadership commits to structural improvements, enhanced operational efficiency and transparent progress updates.
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Earnings Conference Call
AutoCanada Q2 2024
00:00 / 00:00

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Operator

Thank you for joining AutoCanada's conference call to discuss financial results for the second quarter of 2024. I'm John, your moderator for today's call. Before we begin, I'd like to remind everyone that today's discussion may include forward-looking statements, which are subject to risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. I encourage you to review AutoCanada's filings on for a discussion of these risks, the second quarter news release, financial statements, and MD&A. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question at that time, please press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, please press star followed by the number two.

Operator

I'd like to remind everyone that this conference call is being recorded today, Tuesday, August 13, 2024. Now, I'd like to turn the conference call over to Mr. Paul Antony, Executive Chairman of AutoCanada Inc. Please go ahead, Mr. Antony.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

Thank you and good evening, everyone. During the second quarter, AutoCanada faced a combination of factors that significantly impacted our performance. These include the CDK outage, which resulted in lost sales and profit during Q2, mounting OEM inventory, and more specifically, Stellantis, leading to higher day supply and floorplan costs. Economic uncertainty marked by rising unemployment and falling GDP in a still elevated rate environment. As these factors evolved, we were unable to implement our strategic initiatives swiftly enough to adequately counter increasingly challenging market dynamics. Our recent performance has not met our own expectations, and it has become clear to me that we need to further deepen our focus on both deleveraging and the profitability of our core dealership operations. With that said, during the second quarter, we engaged Bain & Company to accelerate key Project Elevate initiatives.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

We're also immediately halting all M&A and return of capital initiatives, have implemented a freeze on discretionary spending, and are actively reviewing strategic alternatives for all non-core and underperforming assets. In the coming months, we will concentrate with precision on enhancing the structure and efficiency of our core dealership operations. We are committed to making the necessary changes to stabilize the company and eventually put us back on the path to profitable growth. I want to take this time to acknowledge our employees and OEM partners and thank them for their commitment and support during what was a challenging second quarter. I also want to welcome Sam Cochrane to the team. Sam is a seasoned executive and joins us as a CFO. He brings a wealth of experience navigating and leading companies through transformational change.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

With that said, I'd like to pass the line over to Sam to discuss the second quarter financial results.

Sam Cochrane
Sam Cochrane
CFO at AutoCanada Inc

Thank you, Paul, and good evening, everyone. During the second quarter, we recorded total sales of $1.6 billion, down 8.8% year-over-year. Adjusted EBITDA of $27 million, down $67.1 million from Q2 last year, and a diluted loss per share of $1.47. There were a number of things that impacted our second quarter adjusted EBITDA, including the CDK outage, a $4.7 million management transition charge, $4.5 million in increased floorplan costs, a $6.8 million loss in our U.S. operations, a $1.3 million loss from RightRide, and a $12.7 million net used inventory provision, which negatively impacted used GPU in both Canada and the U.S.

Sam Cochrane
Sam Cochrane
CFO at AutoCanada Inc

Our diluted earnings per share also reflects these items, as well as an $11.3 million impairment of intangible assets and a $13.2 million write-off of deferred tax assets related to the US operations. Canadian operations' second quarter revenue fell 9% year-over-year to $1.4 billion, with same-store sales declining 10.5%. Canadian gross profit declined 19.9% to $223.8 million, with same-store gross profit falling 20.6%. Adjusted EBITDA was $32.4 million, down 63.7% from Q2 2023. During the second quarter, our Canadian operations were negatively impacted by the CDK outage, an erosion in consumer purchasing power, lack of demand for certain brands, reduced service repair orders, and a softening used vehicle market.

Sam Cochrane
Sam Cochrane
CFO at AutoCanada Inc

These factors resulted in year-over-year declines in our new vehicle, used vehicle, and F&I GPUs, and pressured our parts and service and collision operations. Further, growing floor plan expense due to higher rates and elevated days inventory more than offset a single-digit decline in Canadian operating expenses before depreciation versus the prior year, resulting in the drop in Canadian adjusted EBITDA experienced during the second quarter. US second quarter revenue fell 7.9% year-over-year to $191.2 million. US gross profit declined 34.2% to $25.8 million, and adjusted EBITDA was a loss of $5.4 million, compared to a positive $4.9 million in the second quarter of 2023.

Sam Cochrane
Sam Cochrane
CFO at AutoCanada Inc

This was driven by a decline in new, used, and F&I GPU, which offset the increase in new light vehicles units sold. The U.S. restructuring done earlier this year resulted in a 12.5% decline in U.S. operating expenses before depreciation. However, this was outpaced by the headwinds presented by the CDK outage and tough market conditions during the quarter, resulting in operating expense outstripping gross profit and leading to the second quarter U.S. adjusted EBITDA loss. In light of the CDK outage, during Q2, we obtained covenant relief from our lenders, amending our total net funded debt-to-bank EBITDA ratio covenant to four point five from four, from June 28, 2024, to September 29th, 2024.

Sam Cochrane
Sam Cochrane
CFO at AutoCanada Inc

As of June 30th, 2024, we had $185 million outstanding on our $375 million revolving credit facility, with a total net funded debt-to-bank EBITDA covenant ratio of 4.09. We will continue to work closely with our banking partners as we navigate the next few quarters. I will now turn the line back over to Paul to discuss the outlook.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

Thank you, Sam. With the CDK outage that has now been resolved, the challenging economic and operating conditions that we experienced during the second quarter have not. Going forward, our sole objective will be to successfully execute initiatives that will structurally improve our core dealership profitability, reduce leverage, and allow us to adapt to the evolving market landscape. We anticipate that these efforts may lead to some uncertainty as we realign our operations and resources. However, this restructuring is necessary to position us for best-in-class performance over the next decade. We appreciate the support of our shareholders, employees, and OEM partners as we work through this transformative phase. A commitment to transparency will be a cornerstone of our approach, and we will provide updates to our stakeholders on our progress and in any adjustments to our strategy in the coming quarters. That concludes our prepared remarks.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

At this time, I want to turn the call over to our operator to open up the lines for Q&A. Thank you.

Operator

Ladies and gentlemen, we will now conduct the question-and-answer session. If you have a question, please press star followed by the number one on your touchtone phone. You will hear a three-tone prompt acknowledging your request. If you would like to cancel your request, please press star two. Please ensure you lift the handset if you're using a speakerphone before pressing any keys. One moment, please, for your first question. Your first question comes from the line of Luke Hannan from Canaccord Genuity. Your line is now open.

Luke Hannan
Luke Hannan
Equity Research Analyst in Consumer Products at Canaccord Genuity

Thanks, and good afternoon, everyone. Paul, maybe if you can just give us a, a 30,000-foot view on, like, what, what exactly has led to, to the business being in the shape that it's in today? I realize there's a lot going on from a macro perspective, but we have also had several of the US peers come out and note, yes, there are some headwinds that they're seeing on the consumers, on their consumer, but not quite as bad as it seems like what you have, have laid out earlier today. Maybe just, I don't know, another higher level view or, or maybe a little bit more detail on, on what exactly is, is going on here.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

I mean, I think we talked about it, but and you probably haven't enough time, Luke, to digest, but just a high-level bridge. You know, there was roughly, I think, EBITDA pre-IFRS was 11.3 or 11.2. There's roughly $20 million in inventory write-down and severance. There's roughly $5 million year-over-year interest expense differential this year versus last. And I don't wanna throw an exact dollar out, but I'm gonna say we don't know the exact impact of the CDK, but 15%-20% of the EBITDA reduction, you know, could be attributed to that. And then we have some businesses that didn't perform this year versus last.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

You know, RightRide is really off, as opposed to last year, and our US business is way off. If you add all that up, you're, you know, you're approaching $60 million of EBITDA, as opposed to $80 million last year, which was the best, the best in the company's history. But in previous years, 2022 and 2021, you're around that 65-ish, 69 mark. So we know what to do. CDK certainly didn't help, and it's up to us to go execute, but that's roughly the bridge. Is that helpful, Luke?

Luke Hannan
Luke Hannan
Equity Research Analyst in Consumer Products at Canaccord Genuity

Yeah. No, that's - that is helpful. And maybe just on RightRide for a second, because, you know, I remember the thesis for that business, if I remember correctly, was that it should perform a little bit better, even during more harsh economic backdrops. It should be a little bit countercyclical because you'll have sort of a top grading of the credit portfolio there, if you will. You have some maybe folks whose credit scores are on the precipice or the edge of moving into subprime. You should get more volumes or inflows into that business. So, I mean, what's driving the underperformance there?

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

Yeah, that's. So a couple things. Interest rates obviously going up makes creditworthy people harder and harder to find, and so we're having less people approved. Second thing, that, you know, we, we did as a company, and, you know, this is on, on me. We, we basically started opening up RightRide stores, when COVID hit, and it was the right thing to do, right? We were selling a lot of cars and taking orders for vehicles, and we started getting more into the prime, near prime space and lost focus in the subprime space. And frankly, subprime is a lot harder. It's a lot harder to do. It takes a different salesperson. It's a different sales process.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

For us, we focused on the lower, lower hanging fruit, which is just selling vehicles because it was a shortage. What we're doing right now is, all, all of our non-profitable and non-core assets are under strategic reviews, and we kind of drawn a line in the sand as an organization, that if a store is not meeting our expectation, we need to find a more permanent solution. We're not gonna continue to allocate, you know, management time and financial resources to things that aren't meeting our expectations.

Luke Hannan
Luke Hannan
Equity Research Analyst in Consumer Products at Canaccord Genuity

Got it. Okay, thanks. Last, last question for me. I mean, you, you did touch on the, the strategic alternatives or looking to maximize value with those non-core assets. I mean, why, why not also expand that to just look for the best strategic alternative for the business as a whole, rather than the, the non-core assets alone?

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

You know, right now, I think from our perspective, we've got a pretty significant plan to go and execute against. And, you know, during the demonstration phase, the people will reward us by buying our stock, and, if they don't reward us by buying our stock, somebody will likely figure out a way to buy the company if it's undervalued, would be my expectation.

Luke Hannan
Luke Hannan
Equity Research Analyst in Consumer Products at Canaccord Genuity

Okay, I'll leave it there. Thanks.

Operator

Your next question comes from the line of Chris Murray from ATB Capital Markets. Your line is now open.

Chris Murray
Chris Murray
Managing Director of Institutional Equity Research at ATB Capital Markets

Yes, thanks, folks. Good afternoon. I guess maybe turning back a couple pieces of the IT thing. So first of all, the CDK, just wondering, is there any possibility of any sort of insurance coverage, either on your behalf or theirs, in any sort of that recovery? And then alongside that, you also put out a separate press release tonight about another cybersecurity incident. Wondering if we can get maybe a little more color about what that means and if that was tied to the earlier CDK incident.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

So I would say that it, at this point in time on insurance, we're working with our insurance partners to discuss what, what coverage we do have for cyber and business interruption. So that's what I would say on, on the insurance side, and that's TBD. On the [inaudible] was our most current release a result of CDK? I would say we don't have enough information to say at this point in time, and so, too soon to say.

Chris Murray
Chris Murray
Managing Director of Institutional Equity Research at ATB Capital Markets

Okay. And I guess the other piece of that, I mean, just to try to figure it out, like, how impacted is this new cybersecurity incident? Are we going to be looking at something similar, like your, your operations are impaired at this point, or, you know, any color on that?

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

So it seems like And I don't know how much I should say, but it seems like we were, as a result of what happened with CDK, our BI team went ahead and started locking down things, preemptively, to protect the company. And my guess is, as a result of locking things down preemptively, it triggered, it triggered another event, and we think that it's fairly very sectioned off and probably not as impactful to the organization. But again, too soon to tell. But at first appearance, it seems like it's quite contained.

Chris Murray
Chris Murray
Managing Director of Institutional Equity Research at ATB Capital Markets

Okay. All right, I'll leave that one for now. Maybe turning back to think about, you know, the inventory write-down. You know, Sam, I'm not sure if you can just maybe repeat what the, what the write-down was. But the, just looking at it, can you maybe talk a little bit about the breakdown of the write-down? You did mention that Stellantis inventory is a little bit high. You know, was this in new vehicles? Was this in used vehicles, which we've seen previously? Any color on the, on the, on the rationale for the write-down and, you know, what you're, what you're seeing so far in, in Q3 in terms of, inventory terms?

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

I mean, I'll take that, and I can pass it over to Sam from there, but it was roughly $12.7 million in inventory write down. It was on used inventory in both Canada and the United States. And we're, you know, continuing to monitor the inventory against market conditions to ensure that we're appropriately provided. You know, making sure that we get off this used inventory in this manner was a big contributor to the decline in our GPU and used cars reported during the quarter. I don't know if that's helpful for you?

Chris Murray
Chris Murray
Managing Director of Institutional Equity Research at ATB Capital Markets

Yeah, no, basically, was it the kind of thing that the impacted inventory, you know, basically had to discount to sell? Is that the right way to think about it?

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

You know, it's a few things. Obviously, with CDK being down, I don't want to blame everything on CDK, but with CDK being down, there was just a ton of, a ton of vehicles not sold. And so if they're not being sold, they're kind of depreciating. And we've got, you know, data to say that we need to sell inventory in the first 60-90 days. Otherwise, they actually become quite less profitable. I would say the lack of new light vehicle sales that occurred during the pandemic meant that there's fewer good quality used cars available today. And, you know, also, Stellantis represents roughly 25% of our dealer network in Canada, and the consumer demand for Stellantis has been soft.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

We've, you know, this management team has certainly moved our reliance on Stellantis away from being a, you know, a large Stellantis consolidator. Now we have all brands, but again, 25% of our network is pretty significant. And when Stellantis is soft at 25%, it kind of impacts our used business because if we're not selling new cars, we're not getting trade-ins. And therefore, it's more difficult for us to actually go and acquire good used inventory for good growth margins. But we're just gonna watch the market dynamics, you know, as it relates to inventory and provisions.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

Also, I would say, just as a side note, this is something we're hyper-focused on with Bain that we've been spending time doing right now, making sure that we're managing proper inventory levels in order to make sure that our floorplan expenses are part of the bigger plan.

Chris Murray
Chris Murray
Managing Director of Institutional Equity Research at ATB Capital Markets

Okay. And my last question maybe is just on the strategic review process. You know, it feels like, you know, the underlying business, you know, ex-CDK in Canada was, you know, we'll call CDK a major contributor to what you were seeing here. You know, collision business seems to be going okay. You already called out RightRide as maybe an area for opportunity. But, you know, I guess the other question is about the U.S. business, and just thoughts around that. I know we've had this discussion, you know, for I think several quarters now, about, you know, can you turn it around, what you can do with it.

Chris Murray
Chris Murray
Managing Director of Institutional Equity Research at ATB Capital Markets

But, is this kind of your way of thinking that, or expressing that maybe the US business is should be sold or, or looked at with a different ownership structure?

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

Listen, I think I said this, but all of the non-profitable and non-core operations are under strategic review, and we've really drawn kind of a line in the sand now, that if a store is not meeting our expectations, it's important for us to find something that we can actually more permanently execute on. Because just throwing resources at markets and areas that we don't seem to be able to have the ability to turn in a more permanent fashion, and if they're not meeting our expectations, we need to actually act differently.

Chris Murray
Chris Murray
Managing Director of Institutional Equity Research at ATB Capital Markets

Okay, I'll leave it there. Thank you.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

Thanks.

Operator

Your next question comes from the line of David Ocampo from Cormark Securities. Your line is now open.

David Ocampo
David Ocampo
Equity Research Analyst at Cormark Securities

Thanks. Good afternoon, everyone.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

David.

David Ocampo
David Ocampo
Equity Research Analyst at Cormark Securities

Paul, I just want to stick with the strategic review. I mean, when we think about the non-core underperforming assets, can you maybe speak to the appetite in the marketplace for these assets? Because, I mean, if you're generating negative profitability, I mean, it'd probably be hard to fetch an appropriate valuation for those businesses. So just curious on your thoughts there.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

Look, I think, what I would tell you is that for this management team operating in Canada, even though they have a ton of experience in the United States, it's a different, it's a different market, it's a different lift. And so spending time and energy to properly turn those stores, I don't think makes sense given the current conditions. With that said, a lot of the stores that we purchased, right, we were able to buy and kind of high-grade and top like, top grade. And I would, with quite a bit of confidence, believe that there's a lot of people, that these are brands that are high- highly desirable. And I would think that there are buyers that could actually go and execute where we don't have the competency or the patience to actually do in a market like this.

David Ocampo
David Ocampo
Equity Research Analyst at Cormark Securities

Yeah, that, that, that makes some sense. And then just going back to the write-down, I mean, if I look at your inventory levels and just your commentary on the breakdown, it, it does seem like the write-down's only 3% of your used vehicle inventory. Just curious if there's any risk of, of further write-downs as the, the market continues to deteriorate here, and just maybe some commentary on how you're changing your sourcing, just given the preference for lower priced vehicles.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

You know, there is, there's risk. Yeah, I think the risk is macro. But we have definitely been starting to source vehicles, cheaper vehicles. They're tougher to buy, but I think the risk is more on the macro level. And, yeah, I don't know what more I can add, that I haven't already said. I think that we're being extremely cautious, on all used vehicles, given the buildup on the new cars, and recall that, you know, I mentioned we're working alongside Bain, and one of the key initiatives with us is working together is making sure that our inventory levels and floorplan is top of mind and paramount to this organization.

David Ocampo
David Ocampo
Equity Research Analyst at Cormark Securities

Yeah, that's helpful there, Paul. Then maybe just a quick one for Sam. I know you guys received relief from your lenders on some of your covenants, but when I take a look at your Adjusted EBITDA numbers, it doesn't seem like it backs out any of those one-time related costs, at least in this quarter. How are the lenders looking at the Adjusted EBITDA numbers? Are they excluding all those numbers, just so, you know, we have some better visibility on how to model out the leverage as we move throughout the year?

Sam Cochrane
Sam Cochrane
CFO at AutoCanada Inc

Yeah, good question. So there is a different bucket of add backs that the lenders look at than what you'll see there. For example, in the quarter, the significant one is we had $4.5 billion of severance related to some senior leaders, so that wasn't added back to the $11.2, but that will be added back to the bank EBITDA. So that's probably the significant call-out for your modeling. Is that helpful?

David Ocampo
David Ocampo
Equity Research Analyst at Cormark Securities

Yeah, that's helpful, and we could, we could take it offline, later today, too, if I have any

Sam Cochrane
Sam Cochrane
CFO at AutoCanada Inc

Yeah, absolutely. Yeah, yeah. And listen, we're gonna have to work with them, obviously going forward, and appreciate their support.

David Ocampo
David Ocampo
Equity Research Analyst at Cormark Securities

Okay. Thanks a lot, Sam. Thanks, thanks, Paul.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

Thanks, David.

Operator

Your next question comes from the line of Krista Friesen from CIBC. Your line is now open.

Krista Friesen
Krista Friesen
Director of Equity Research at CIBC

Hi, thanks for taking my question. So just on the, on the comprehensive review of Bain, it sounds like you've been working with them for at least a month or two now. At, at this point in time, is there anything that's, that's kind of started or, or any initiatives that have been started under their direction, or is it still kind of just, in a, in a holding pattern right now to, to see how to move forward? I'd also just assume at this point that Project Elevate, that's, that's pretty much been put on hold indefinitely.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

Yeah. So I'll, Let me just unpack that. The Bain initiative and Project Elevate are both incorporated together, to a certain extent, and I would say the view from Bain is it validates the opportunity for improvement in our business and to bring our cost structure more in line with our peers. And so I would just go back to the cost structure of our peers and kind of use that for base camp. I would tell you that most of the execution's gonna happen over the next 12 months. It's not gonna be easy, but we are going to do it. There are going to be one-time costs associated with this stuff. We're not gonna give guidance on it, but we do know the kind of work that we need to do will have some costs.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

And some of the immediate things that we're gonna do is, you know, halt M&A, share buyback, limit discretionary spending and growth CapEx, and look at at all the strategic alternatives for things that don't have sufficient profitability. But I would say that this is all stuff that, you know, we've wanted to do for a long time. I don't know, I wouldn't say wanted to do, that the company's needed to do for a long time, but you kind of look the other way sometimes when you're taking orders for cars versus selling them, and it's a different world, and so now is the time.

Krista Friesen
Krista Friesen
Director of Equity Research at CIBC

Okay, great. I guess, I mean, obviously there's been a lot that's gone on this past quarter with the CDK hack and whatnot. Have you seen any sort of underlying improvement, maybe even just recently with the recent rate cuts? Like, is there any sort of silver lining you can point to either in the quarter or thus far into Q3?

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

Sorry, I'm sorry. Could you repeat that?

Krista Friesen
Krista Friesen
Director of Equity Research at CIBC

Just any sort of silver lining that you can point to, maybe you're starting to see a little bit of improvement in traffic, just given the rate cuts we've had here in Canada, or is everything still, yeah, pretty, pretty negative?

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

I don't want to say it's negative, but I would just say, look, CDK came back online in the beginning of July, but we still didn't have it fully functional until towards the end of July. We're kind of one and a half weeks into August. It's too soon to tell, is what I would share with you, but I would say that it's just something we can't forecast right now. From my perspective, I think that we'll have more insight probably in the next month or so, but I think given everything that's been going on from, you know, two hacks and just and a poor quarter, I think right now we just need to focus on the business.

Krista Friesen
Krista Friesen
Director of Equity Research at CIBC

Okay, thanks. I'll jump back in the queue.

Operator

There are no further questions at this time. I will now turn the call back to Mr. Paul Antony. Please continue.

Paul Antony
Paul Antony
Executive Chairman at AutoCanada Inc

I really appreciate everybody's support here, and we recognize, you know, our need to do better and are optimistic for the next quarter and hopeful that we'll be delivering far better results. So thanks, everybody, for your time, and, I'm sure many of you we'll speak to over the course of the quarter. Thanks.

Operator

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Executives
    • Paul Antony
      Paul Antony
      Executive Chairman
    • Sam Cochrane
      Sam Cochrane
      CFO
Analysts
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