AutoCanada Income Fund releases financial results for the reporting period
ended September 30, 2009 and announces its intention to convert to a
corporation and the termination of the special committee:
A conference call to discuss the results for the period ended
September 30, 2009 will be held on November 10, 2009 at 11 a.m. Eastern
time. To participate in the live conference call, please dial
1-800-814-4860 or 1-416-644-3415 approximately 10 minutes prior to the
call. An archived audio webcast of the conference call will also be
available on the Fund's website www.autocan.ca.
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2009 Third Quarter Operating Results
- Net earnings of $5.1 million
- EBITDA of $6.7 million
- Revenue of $212.9 million
- Gross profit of $38.8 million
- Same store revenue decreased by 3.9%
- Same store gross profit decreased by 6.3%
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Third Quarter 2009 Summary
- Adjusted distributable cash for the third quarter of 2009 decreased
by $1.7 million to $5.9 million from $7.6 million in 2008.
- In the third quarter of 2009, the Fund generated net earnings of
$5.1 million or basic earnings per unit of $0.256, standardized
distributable cash of $0.463 per unit and adjusted distributable cash
of $0.297 per unit, and declared distributions of $nil per unit, for
a standardized payout ratio of 0.0% and an adjusted payout ratio of
0.0%.
- Same store revenue decreased by $7.7 million and same store gross
profit decreased by $2.4 million in the third quarter of 2009,
compared to the results of the Fund for the same quarter in 2008.
- Revenue from existing and new dealerships decreased by 1.8% to
$212.9 million in the third quarter of 2009 from the $216.7 million
in the same quarter in 2008.
- Gross profit from existing and new dealerships decreased by 3.7% to
$38.8 million in the third quarter of 2009 from the $40.3 million in
the same quarter in 2008.
- EBITDA decreased by 15.8% to $6.7 million in the third quarter of
2009 from the $8.0 million in the same quarter in 2008.
- Net earnings increased to $5.1 million in the third quarter of 2009
from a $38.3 million loss in the same quarter in 2008.
- Net earnings for the three months ended September 30, 2009, not
including the goodwill impairment charge and its related future
income tax recovery from the three month period ended
September 30, 2008, decreased by $1.6 million to $5.1 million from
$6.7 million.
- Same store new vehicle unit sales decreased 1.7% in the third quarter
of 2009 as compared to the same quarter in 2008.
- New vehicle unit sales in Canada decreased by 6.0% in the third
quarter of 2009 as compared to the same quarter in 2008.
- New vehicles unit sales in British Columbia and Alberta (our
primary markets) decreased by 8.8% and 18.1% respectively in the
third quarter of 2009 as compared to the same quarter in 2009.
- New vehicle units retailed in the third quarter of 2009 decreased by
9 units as compared to 2008. Used vehicle units retailed decreased by
125 units. Although sales volumes during the third quarter were down
slightly from the comparable period in 2008, EBITDA decreased by
15.8%. The Fund attributes the lower earnings, despite marginal
change in units retailed, to lower earnings in our finance and
insurance department. Tighter lending conditions due to the economic
downturn has negatively affected our finance and insurance revenue
per vehicle retailed, thus impacting our earnings.
In commenting on the results of the past quarter, Patrick Priestner, AutoCanada's Chief Executive Officer, noted that "Despite the prolonged economic downturn in
Conversion to a Corporation
AutoCanada Income Fund is pleased to announce its plans to convert to a corporation (the "Reorganization") pursuant to a plan of arrangement transaction under the Business Corporations Act (Alberta). Pursuant to the Reorganization, holders of fund units ("Unitholders") of the Fund will receive common shares ("Common Shares") of a newly-formed corporation (AutoCanada Inc. "ACI") on a one-for-one basis (the "Exchange Ratio"). The Reorganization will result in ACI holding the assets and business operations previously held and operated by the Fund and its subsidiaries. All of the members of the Board of Trustees of the Fund and Board of Directors of AutoCanada GP Inc. will continue as directors of ACI and senior officers of the Fund will continue as directors of ACI. Also in the Reorganization, holders of exchangeable limited partnership units ("Exchangeable Units") of AutoCanada Limited Partnership (the "Partnership") will ultimately exchange their Exchangeable Units for Common Shares based on the Exchange Ratio. The Reorganization will result in ACI having approximately 19.9 million Common Shares issued and outstanding.
Since the
As a result of the analysis, the Board of Trustees of the Fund and the Board of Directors of AutoCanada GP Inc. have unanimously concluded that the proposed Reorganization best enables AutoCanada to execute its business and strategic plan and deliver strong growth and capital appreciation for unitholders of the Fund, and thus has unanimously resolved to recommend that unitholders of the Fund vote their Fund units and Exchangeable Units in favour of the Reorganization.
Officers and Directors of AutoCanada GP Inc. beneficially owning 46.89% of the issued and outstanding Fund units and Exchangeable Units of the Fund intend to vote their Fund units and Exchangeable Units in favour of the Reorganization. Given the diminished value of the income fund structure, management and the Board believe that the best opportunity for creating value is to reinvest a significant portion of overall funds from operations into the business and to focus on increasing overall earnings per share. At the same time, management and the Board recognize that many investors require or prefer an element of cash yield from their investment. By converting to a growth-orientated, dividend-paying corporation, management and the Board believe that AutoCanada will be best positioned to invest in attractive growth opportunities while at the same time potentially be in the position to provide income-orientated investors with an attractive cash yield through a dividend.
The Reorganization is subject to the receipt of all required regulatory, stock exchange and Court of Queen's Bench approvals as well as approval by at least 66 2/3% of the votes cast by Unitholders and the holders of Exchangeable Units present in person or by proxy at a duly convened special meeting (the "Unitholder Meeting") of securityholders of the Fund. It is anticipated that an information circular and proxy statement in connection with the Unitholder Meeting will be mailed to Unitholders and the holders of Exchangeable Units on or about
Coinciding with the meeting to vote on the Reorganization, Unitholders will vote on amending the terms to the Partnership Agreement and the Option Plan. These items require amendment in order to facilitate, or as a result of the Reorganization.
The Reorganization has been structured to allow Unitholders resident in
Application will be made to list the public corporation's common shares on the
Termination of a Special Committee
On
Distributions to Unitholders
The Fund's policy is to distribute to Unitholders available cash provided by operations after cash required for capital expenditures, working capital reserves, growth of capital reserves and other reserves considered advisable by the Trustees of the Fund. The Board of Trustees approves all distributions and reviews the distribution levels on a periodic basis.
On
On
The following table summarizes the distributions declared by the Fund for the period from
(In thousands of dollars)
Exchangeable
Fund Units Units Total
--------------- --------------- --------------
Record date Payment date Declared Paid Declared Paid Declared Paid
$ $ $ $ $ $
January 30, February 16,
2009 2009 881 881 775 775 1,656 1,656
February 27, March 16,
2009 2009 441 441 388 388 829 829
N/A(1) N/A(1) - - - - - -
----------------------------------------------
1,322 1,322 1,163 1,163 2,485 2,485
(1) No further distributions since those disclosed above have been
declared as at the date of this MD&A. No record date or payment date
is applicable.
Distributions are paid on Fund Units and Exchangeable Units. As of
September 30, 2009 the following numbers of units were outstanding:
Fund Units 10,573,430
Exchangeable Units 9,307,500
-------------
19,880,930
-------------
-------------
During the three-month and nine-month periods ended
SELECTED QUARTERLY FINANCIAL INFORMATION AND RESULTS FROM OPERATIONS
The following table shows the unaudited results of the Fund for each of the eight most recently completed quarters. The results of operations for these periods are not necessarily indicative of the results of operations to be expected in any given comparable period.
(In thousands of dollars except
Operating Data and gross profit %)
Q4 Q1 Q2 Q3
2007 2008 2008 2008
Income Statement Data
New vehicles 111,683 107,688 128,371 118,807
Used vehicles 50,468 55,712 61,223 57,790
Parts, service &
collision repair 23,863 23,536 26,610 26,492
Finance, insurance & other 10,697 11,180 13,121 13,597
----------------------------------------
Revenue 196,711 198,116 229,325 216,686
----------------------------------------
New vehicles 8,176 7,012 9,699 9,266
Used vehicles 3,746 4,393 5,180 5,156
Parts, service &
collision repair 11,494 11,082 12,896 13,290
Finance, insurance & other 10,106 10,579 12,244 12,629
----------------------------------------
Gross profit 33,522 33,066 40,019 40,341
----------------------------------------
Gross profit % 17.0% 16.7% 17.5% 18.6%
Sales, general & admin expenses 25,654 26,317 29,916 30,491
SG&A exp. as % of gross profit 76.5% 79.6% 74.8% 75.5%
Floorplan interest expense 2,432 2,034 1,895 1,693
Other interest & bank charges 296 256 396 458
Future income taxes (1,182) 330 148 (1,869)
Net earnings(4) 5,466 3,358 6,906 (38,318)
EBITDA(1)(4) 5,310 4,621 8,022 7,975
Operating Data
Vehicles (new and used) sold 5,363 5,552 6,576 6,462
New retail vehicles sold 2,618 2,462 3,471 3,245
New fleet vehicles sold 569 716 470 532
Used retail vehicles sold 2,176 2,374 2,635 2,685
Number of service & collision
repair orders completed 57,552 61,169 72,227 74,300
Absorption rate(2) 93% 90% 100% 99%
No. of dealerships 19 19 20 21
No. of same store dealerships(3) 11 13 14 14
No. of service bays at period end 260 260 279 284
Same store revenue growth(3) 5.3% (0.6)% (3.8)% (17.1)%
Same store gross profit growth(3) 6.5% 0.7% 0.2% (3.3)%
Balance Sheet Data
Cash and cash equivalents 18,014 15,298 18,459 19,194
Accounts receivable 34,274 36,411 35,374 39,390
Inventories 142,128 132,549 135,447 134,565
Revolving floorplan facilities 143,655 134,023 131,505 135,562
Q4 Q1 Q2 Q3
2008 2009 2009 2009
Income Statement Data
New vehicles 96,634 87,176 108,181 117,513
Used vehicles 47,605 49,550 55,098 56,386
Parts, service &
collision repair 27,105 26,390 27,322 26,941
Finance, insurance & other 11,023 9,683 11,669 12,027
----------------------------------------
Revenue 182,367 172,799 202,270 212,867
----------------------------------------
New vehicles 6,729 5,828 7,951 9,003
Used vehicles 3,671 3,810 5,677 5,744
Parts, service &
collision repair 13,090 12,811 13,708 13,374
Finance, insurance & other 10,137 8,732 10,489 10,717
----------------------------------------
Gross profit 33,627 31,181 37,825 38,838
----------------------------------------
Gross profit % 18.4% 18.0% 18.7% 18.3%
Sales, general & admin expenses 28,157 27,813 30,450 30,565
SG&A exp. as % of gross profit 83.7% 89.2% 80.5% 78.7%
Floorplan interest expense 1,443 970 1,104 1,399
Other interest & bank charges 441 375 552 802
Future income taxes (8,579) 97 67 36
Net earnings(4) (67,121) 1,054 4,750 5,099
EBITDA(1)(4) 3,868 2,230 6,135 6,716
Operating Data
Vehicles (new and used) sold 5,124 5,149 6,067 6,415
New retail vehicles sold 2,376 2,219 3,030 3,236
New fleet vehicles sold 526 473 446 619
Used retail vehicles sold 2,222 2,385 2,591 2,560
Number of service & collision
repair orders completed 69,560 70,021 75,062 79,346
Absorption rate(2) 94% 84% 90% 92%
No. of dealerships 22 22 22 22
No. of same store dealerships(3) 14 16 17 18
No. of service bays at period end 288 323 323 321
Same store revenue growth(3) (16.7)% (19.8)% (15.3)% (3.9)%
Same store gross profit growth(3) (8.0)% (12.8)% (8.7)% (6.3)%
Balance Sheet Data
Cash and cash equivalents 19,592 12,522 14,842 23,224
Accounts receivable 31,195 33,821 27,034 38,134
Inventories 139,948 116,478 90,141 107,431
Revolving floorplan facilities 137,453 114,625 73,161 105,254
(1) EBITDA has been calculated as described under "Non-GAAP Measures"
above.
(2) Absorption has been calculated as described under "Non-GAAP
Measures" above.
(3) Same store revenue growth & same store gross profit growth is
calculated using franchised automobile dealerships that we have owned
for at least 2 full years.
(4) The results from operations have been lower in the first and fourth
quarters of each year, largely due to consumer purchasing patterns
during the holiday season, inclement weather and the reduced number
of business days during the holiday season. As a result, our
financial performance is generally not as strong during the first and
fourth quarters than during the other quarters of each fiscal year.
The timing of acquisitions may have also caused substantial
fluctuations in operating results from quarter to quarter.
The following table summarizes the results for the three-month and
nine-month periods ended September, 2009 on a same store basis by revenue
source and compares these results to the same period in 2008.
Same Store Gross Profit and Gross Profit Percentage
For the Three Months Ended
Gross Profit Gross Profit %
(In thousands of
dollars except
% change and Sept 30, Sept 30, % Sept 30, Sept 30, %
gross profit %) 2009 2008 Change 2009 2008 Change
-------- --------
Revenue Source
New vehicles 7,852 8,321 (5.6)% 7.7% 7.9% (2.5)%
Used vehicles 5,333 4,868 9.5% 10.2% 9.0% 13.3 %
Finance & insurance
and other 9,815 12,028 (18.4)% 91.7% 94.0% (2.4)%
------- ------- -------
Subtotal 23,000 25,217 (8.8)%
Parts, service &
collision repair 12,122 12,260 (1.1)% 50.0% 50.1% (0.0)%
------- ------- ------- ------- ------- -------
Total 35,122 37,477 (6.3)% 18.6% 19.0% (2.1)%
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
For the Nine Months Ended
Gross Profit Gross Profit %
(In thousands of
dollars except
% change and Sept 30, Sept 30, % Sept 30, Sept 30, %
gross profit %) 2009 2008 Change 2009 2008 Change
-------- --------
Revenue Source
New vehicles 19,891 24,220 (17.9)% 7.3% 7.4% (1.4)%
Used vehicles 14,259 14,121 1.0% 9.6% 8.5% 12.9 %
Finance & insurance
and other 27,635 34,167 (19.1)% 91.9% 94.2% (2.4)%
------- ------- -------
Subtotal 61,785 72,508 (14.8)%
Parts, service &
collision repair 36,297 35,255 3.0% 49.8% 48.5% 2.7%
------- ------- ------- ------- ------- -------
Total 98,082 107,763 (9.0)% 18.7% 17.9% 4.5%
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
About AutoCanada
The Fund commenced business operations on
In August of 2008, the Fund announced it had received regulatory approval from the
Prior to
AutoCanada is Canada's only publicly traded entity with interests exclusively in the operation of franchised automobile dealerships. Through its 53% interest in AutoCanada LP, it presently owns or manages 22 franchised automobile dealerships in six provinces and has over 1,100 employees. Through its owned and managed dealerships, it currently sells Chrysler, Dodge, Jeep(R), Infiniti, Nissan, Hyundai, Subaru, Volkswagen and Mitsubishi branded vehicles. In 2008, its owned and managed dealerships sold approximately 23,700 vehicles, processed approximately 277,300 service and collision repair orders in 284 service bays, and generated revenue of approximately
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 our 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", "expect", "plan", "seek", "may", "intend", "likely", "will", "believe" 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 document.
In particular, material forward-looking statements in this press release include:
- significant challenges the Fund may face as a result of the sharp
decline in demand for new vehicles as a result of the global
recession and credit crisis.
- assumptions of future credit and market conditions
- assumptions regarding the effect of conversion to a corporation on
the Fund's results
Although we believe that the expectations reflected by the forward-looking statements presented in this release are reasonable, our forward-looking statements have been based on assumptions and factors concerning future events that may prove to be inaccurate. Those assumptions and factors are based on information currently available to us about ourselves and the businesses in which we operate. Information used in developing forward-looking statements has been acquired from various sources including third-party consultants, suppliers, regulators, and other sources. In some instances, material assumptions are disclosed elsewhere in this release in respect of forward-looking statements.
The Fund's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference.
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 our 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.
Non-GAAP Measures
References to "EBITDA" are to earnings before interest expense (other than interest expense on floorplan financing and other interest), income taxes, depreciation, amortization and asset impairment charges. Management believes that, in addition to earnings or loss, EBITDA is a useful supplemental measure of both performance and cash available for distribution before debt service, changes in working capital, capital expenditures and income taxes.
References to "standardized distributable cash" and "adjusted distributable cash" are to cash flow provided by operating activities available for distribution to unitholders of the Fund (the "Unitholders") in accordance with the distribution policies of the Fund. Standardized distributable cash and adjusted distributable cash of the Fund are measures generally used by Canadian open-ended trusts as an indicator of financial performance. As two of the factors that may be considered relevant by prospective investors is the cash distributed by the Fund relative to the price of the units, management believes that standardized distributable cash and adjusted distributable cash of the Fund are useful supplemental measures that may assist prospective investors in assessing an investment in the Fund. Standardized distributable cash is calculated as cash flows from operating activities, including the effects of changes in non-cash working capital, less total capital expenditures. Adjusted distributable cash is calculated as cash flows provided by operating activities before changes in non-cash working capital, less purchases of non-growth property and equipment.
References to "standardized payout ratio" represent a comparison of distributions declared to standardized distributable cash. References to "adjusted payout ratio" represent a comparison of distributions declared to adjusted distributable cash. Management believes that both standardized payout ratio and adjusted payout ratio are indicators of the Fund's conservatism and its ability to continue to make distributions to Unitholders at current rates.
EBITDA, standardized distributable cash, adjusted distributable cash, standardized payout ratio and adjusted payout ratio are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Investors are cautioned that EBITDA, standardized distributable cash, adjusted distributable cash, standardized payout ratio and adjusted payout ratio should not replace net earnings or loss (as determined in accordance with GAAP) as an indicator of the Fund's performance, of its cash flows from operating, investing and financing activities or as a measure of its liquidity and cash flows. The Fund's methods of calculating EBITDA, adjusted distributable cash, and adjusted payout ratio may differ from the methods used by other issuers. Therefore, the Fund's EBITDA, adjusted distributable cash, and adjusted payout ratio may not be comparable to similar measures presented by other issuers. For a reconciliation of adjusted distributable cash to standardized distributable cash, please see "Adjusted Distributable Cash" below.
References to ''absorption rate'' are to the extent to which the gross profits of a franchised automobile dealership from parts, service and collision repair cover the costs of these departments plus the fixed costs of operating the dealership, but does not include expenses pertaining to our head office. For this purpose, fixed operating costs include fixed salaries and benefits, administration costs, occupancy costs, insurance expense, utilities expense and interest expense (other than interest expense relating to floor plan financing) of the dealerships only. Absorption rate is an operating measure commonly used in the retail automotive industry as an indicator of the performance of the parts, service and collision repair operations of a franchised automobile dealership. Absorption rate is not a measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP. Therefore, absorption rate may not be comparable to similar measures presented by other issuers that operate in the retail automotive industry.
Additional information about AutoCanada Income Fund is available at the Fund's website at www.autocan.ca and www.sedar.com.
AutoCanada Income Fund
Interim Consolidated Balance Sheet
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(expressed in Canadian dollar thousands)
September 30, December 31,
2009 2008
(unaudited)
ASSETS $ $
Current assets
Cash and cash equivalents 23,224 19,592
Restricted cash - 3,238
Accounts receivable 38,134 31,195
Inventories (note 3) 107,431 139,948
Prepaid expenses 1,929 1,565
---------- ----------
170,718 195,538
Property & equipment 18,427 17,227
Intangible assets 43,700 43,700
Future income taxes (note 2(a) & 10) 384 585
Other assets 54 54
---------- ----------
233,283 257,104
---------- ----------
---------- ----------
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 26,090 21,990
Revolving floorplan facilities (note 4) 105,254 137,453
Distributions payable (note 8) - 1,656
Current portion of long term debt (note 5) 4,472 570
---------- ----------
135,816 161,669
Long term debt (note 5) 19,064 25,522
---------- ----------
154,880 187,191
---------- ----------
Contingencies (note 6)
UNITHOLDERS' EQUITY
Fund units (note 7(a) and (c)) 101,588 101,588
Exchangeable units (note 7(d)) 88,847 88,847
Contributed surplus (note 7(e)) 3,894 3,822
Deficit (115,926) (124,344)
---------- ----------
78,403 69,913
---------- ----------
233,283 257,104
---------- ----------
---------- ----------
Approved on behalf of the Fund:
(Signed) "Gordon R. Barefoot" Trustee (Signed) "Robin Salmon" Trustee
AutoCanada Income Fund
Interim Consolidated Statement of Operations, Comprehensive Income (Loss)
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and Deficit
-----------
(expressed in Canadian dollar thousands except unit and per unit amounts)
Three Three Nine Nine
Months ended Months ended Months ended Months ended
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
(Restated - (Restated -
Note 2(d)) Note 2(d))
$ $ $ $
Revenue
Vehicles 185,569 189,474 506,064 565,743
Parts, service and
collision repair 26,942 26,492 80,660 76,638
Other 356 720 1,212 1,746
---------------------------------------------------------
212,867 216,686 587,936 644,127
Cost of sales
(note 3) 174,028 176,346 480,091 530,702
---------------------------------------------------------
Gross profit 38,839 40,340 107,845 113,425
---------------------------------------------------------
Expenses
Selling, general
and administrative 30,565 30,491 88,828 86,723
Interest 2,201 2,151 5,202 6,732
Amortization 937 885 2,711 2,414
Goodwill impairment - 47,000 - 47,000
---------------------------------------------------------
33,703 80,527 96,741 142,869
---------------------------------------------------------
Earnings (loss)
before income taxes 5,136 (40,187) 11,104 (29,444)
Future income taxes
(recovery) (note
2(a) & 10) 37 (1,869) 201 (1,391)
---------------------------------------------------------
Net earnings (loss)
& comprehensive
income (loss) for
the period 5,099 (38,318) 10,903 (28,053)
---------------------------------------------------------
Deficit, beginning
of period - as
previously stated (121,025) (17,233) (124,344) (16,968)
Change in
accounting policy
related to future
income taxes
(note 2(a)) - 8,385 - 7,979
Distributions
declared (note 8) - (5,057) (2,485) (15,181)
---------------------------------------------------------
Deficit, end of
period (115,926) (52,223) (115,926) (52,223)
---------------------------------------------------------
---------------------------------------------------------
Earnings (loss)
per unit
Basic 0.256 (1.892) 0.548 (1.385)
---------------------------------------------------------
---------------------------------------------------------
Diluted 0.256 (1.892) 0.548 (1.385)
---------------------------------------------------------
---------------------------------------------------------
Weighted average
units
Basic 19,880,930 20,249,732 19,880,930 20,254,560
---------------------------------------------------------
---------------------------------------------------------
Diluted 19,880,930 20,249,732 19,880,930 20,254,560
---------------------------------------------------------
---------------------------------------------------------
AutoCanada Income Fund
Interim Consolidated Statement of Cash Flows
-------------------------------------------------------------------------
(expressed in Canadian dollar thousands)
Three Three Nine Nine
Months Ended Months Ended Months ended Months ended
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
Cash provided by
(used in) $ $ $ $
Operating activities
Net earnings
(loss) for the
period 5,099 (38,318) 10,903 (28,053)
Items not affecting
cash
Future income
taxes (recovery)
(note 10) 37 (1,869) 201 (1,391)
Unit based
compensation
(note 7(e)) 11 19 72 121
Amortization 937 885 2,711 2,414
(Gain) loss on
disposal of
property &
equipment 17 (21) 8 (7)
Goodwill impairment - 47,000 - 47,000
---------------------------------------------------------
6,101 7,696 13,895 20,084
Net change in
non-cash working
capital balances 3,556 2,760 (4,841) 6,918
---------------------------------------------------------
9,657 10,465 9,054 27,002
---------------------------------------------------------
Investing
activities
Business
acquisitions- - (8,297) - (20,801)
Purchase of
property &
equipment (458) (1,662) (3,698) (3,335)
Proceeds on sale
of other assets
(net of purchases) - 37 - 25
Proceeds on sale
of property &
equipment 37 223 92 247
Restricted cash 925 (941) 3,238 442
---------------------------------------------------------
504 (10,640) (367) (23,422)
---------------------------------------------------------
Financing
activities
Proceeds from long
term debt - 6,495 286 13,561
Repayment of long
term debt (1,779) (224) (2,856) (485)
Repurchase of
Fund units - (295) - (295)
Distributions paid
to Unitholders - (5,057) (2,485) (15,181)
---------------------------------------------------------
(1,779) 919 (5,055) (2,400)
---------------------------------------------------------
Increase in cash 8,382 735 3,632 1,180
Cash and cash
equivalents,
beginning of
period 14,842 18,459 19,592 18,014
---------------------------------------------------------
Cash and cash
equivalents, end
of period 23,224 19,194 23,224 19,194
---------------------------------------------------------
---------------------------------------------------------
Supplementary
information
Cash interest
paid 1,921 2,114 4,713 6,723
Transfer of
inventory to
property &
equipment 640 60 1,006 863
Transfer of
property &
equipment to
inventory 286 135 706 544
For further information: Tom Orysiuk, CA, Executive Vice-President and Chief Financial Officer, Phone: (780) 732-3139, Email: [email protected]
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