Toronto, Ontario — In this weekly Tuesday ticker, AutoCanada selects two luxury dealerships in Ontario, teasing the possibility of expanding collision services; Uni-Select announces a “good start” to the year with its first quarter 2022 financial results, and a Toronto-based parts manufacturer sees sharp declines in net profits.
Rely on luxury
AutoCanada added two luxury dealerships to its portfolio last week; the Edmonton-based group acquired Porsche of London and Audi of Windsor last week for an undisclosed price.
The dealerships, which are owned by the Leavens Automotive Group of southwestern Ontario, generate more than $80 million in revenue annually, AutoCanada said. Both facilities are newly built, the company added.
AutoCanada also said the acquisition opens up additional growth opportunities, including “the potential to expand AutoCanada’s collision center footprint in each of the markets,” it wrote in its announcement. ‘acquisition.
AutoCanada currently boasts 78 franchised dealerships comprised of 28 brands and operates in eight Canadian provinces plus a group in Illinois, USA. over $4.5 billion.
“Strong” start for 2022
Uni-Select released its first quarter 2022 financial results last week, citing a “very strong start to the year”, with sales up 10.7% to $409.6 million, adjusted EBITDA up more than 50% to $7.7 million.
The Boucherville, Quebec-based company said consolidated sales were driven by organic growth of 11.6%, with all three segments—FinishMaster, Canadian Automotive Group and GSF Car Parts UK—reporting positive organic growth including between 9.2% and 14.8% for the district.
The FinishMaster United States segment recorded sales of $172.8 million, with organic growth of 9.2% driven by the general market recovery and price increases, while the Canadian Automotive Group segment recorded sales of $129.8 million, an increase of 12.7% mainly attributable to organic growth of 12.2%. and acquisitions over the last twelve months.
The GSF Car Parts UK segment recorded sales of $107.1 million, an increase of 10.7% mainly driven by organic growth of 14.8% offsetting an unfavorable fluctuation of the pound sterling against the US dollar during the first quarter of 2022.
Uni-Select said it still expects improved sales and profitability in 2022, compared to 2021, adding that the magnitude of the improvement will likely be greater in the first half of 2022.
“[This is] due to the timing of certain discounts as we begin to outgrow certain operational improvements implemented in the second half of 2021 while continuing to navigate supply chain and ongoing labor issues” , the company wrote.
“Our priorities for 2022 will be to continue to focus on organic growth and drive operational improvements across every business unit.”
Martinrea makes some moves
Martinrea International says its net profits fell 35% in the first quarter of 2022, despite higher revenues for the Toronto-based auto parts maker.
Martinrea reported a profit of $25.2 million, compared to $38.7 million in the same quarter of 2021.
Adjusted net income was $24.8 million, or 31 cents per share, down 24% from $32.6 million or 41 cents per share in the first quarter of 2021.
Analysts had expected Martinrea to return 11 cents per share of adjusted earnings on $997.3 million in revenue, according to Refinitiv.
Martinrea said the results were better than the third and fourth quarters of 2021 thanks to lower levels of semiconductor-related production shutdowns and customer calls in the quarter.
The company is also experiencing its highest level of new business launch activity in its history, CEO Pat D’Eramo said in a press release.
The company remains confident in its outlook for 2023, it said, including expectations of more than $200 million in free cash flow.