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BRIEF-Autocanada Inc Announces Suspension Of Dividend

Published 2020-04-20, 06:39 p/m
ACQ
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April 20 (Reuters) - AutoCanada Inc ACQ.TO :

* Q1 REVENUE C$721 MILLION VERSUS REFINITIV IBES ESTIMATE OF C$739 MILLION

* SUSPENSION OF DIVIDEND

* COMPANY HAS LAID OFF APPROXIMATELY 1,700, OR 40% OF AUTOCANADA'S WORKFORCE TO DATE

* EXPECTS TO INCUR NO MORE THAN $10 MILLION IN TOTAL CAPITAL SPENDING IN YEAR

* EXECUTIVE CHAIRMAN, PAUL ANTONY, HAS VOLUNTARILY ACCEPTED A 50% REDUCTION IN SALARY FOR Q2 2020

* BOARD OF DIRECTORS HAS ALSO VOLUNTARILY ACCEPTED A 50% REDUCTION TO THEIR FEES FOR Q2 2020

* COMPANY HAS ALSO DEFERRED ALL SALARY INCREASES UNTIL FURTHER NOTICE

* COMPANY'S EXECUTIVE MANAGEMENT TEAM HAS VOLUNTARILY ACCEPTED A 25% REDUCTION IN THEIR BASE SALARIES FOR Q2 2020

* SEES INCREASE IN CO'S SAME STORE USED-TO-NEW VEHICLES SOLD RATIO TO 1.09 IN Q1 2020 FROM 0.72 IN Q1 2019

* AUTOCANADA - TO TAKE CHARGE OF $1.8 MILLION TO ADJUSTED EBITDA IN Q1 TO ELIMINATE ALL FORWARD CONTRACT EXPOSURE ASSOCIATED WITH EXPORT / CROSS-BORDER BUSINESS

* EXPECTS TO AVAIL ITSELF OF ALL APPLICABLE GOVERNMENT SUBSIDY AND DEFERRAL PROGRAMS IN BOTH CANADA AND IN U.S.

* HAS REDUCED ITS GROWTH AND MAINTENANCE CAPITAL SPENDING TO A MINIMUM

* IN LATTER PART OF Q1 2020 & INTO START OF Q2 2020, EFFECTS OF COVID-19 ON MARKETS CO SERVE RESULTED IN STEEP DECLINE IN CO'S REVENUE

* TEMPORARY SUSPENSION OF OUR DIVIDEND REPRESENTS APPROXIMATELY $11 MILLION IN ANNUALIZED CASH SAVINGS

* COMPANY WILL HOLD A CONFERENCE CALL AND WEBCAST TO DISCUSS Q1 2020 RESULTS ON JUNE 4, 2020

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