CAR Holdings First Update
It is with great pleasure that we are sending out the first update to the CAR Holdings shareholders. For those that we have not yet had the opportunity of meeting, we are the executive team at CAR Holdings. Going forward, we will be sending a quarterly update on the progress of CAR Holdings, and we're always available to answer any questions that you may have.
With slightly over a year of operations, things have been very busy for CAR Holdings. Here are some highlights:
Acquisition of a Master Mechanic location in Erin Mills, Mississauga. Prior to acquisition, the location earned approximately $350K per annum in gross revenues. Shortly after acquisition and after we implemented various technology and process improvements, the location is earning over $700k per annum, and growing.
Acquisition in November 2016 of Beech Motorworks in Hamilton. This is a well performing repair and service auto facility with over $2M in annual revenues.
Opening of a second Beech Motorworks location in Hamilton in November 2016. We are targeting $700K in annualized revenues in the first 12 months following the grand opening of this greenfield location.
Acquisition in May 2017 of three locations in eastern and northern GTA (Richmond Hill, Aurora, and Newmarket). These locations collectively earn over $3M in annual revenues. With this acquisition, CAR Holdings currently owns and operates six locations in southern Ontario.
Planned acquisition of a location in Scarborough before October 2017.
CAR Holdings currently has approximately 50 employees, and this number is quickly growing. We consider our employees absolutely integral to the success of CAR Holdings, and look forward to recruiting the best employees in the industry.
CAR Holdings has made significant investments into our technology in an effort to distinguish ourselves from the competition and as visionaries into the future of automotive repair. For example, we have implemented AutoServe1 as a software tool that provides a comprehensive vehicle report to all customers. Almost immediately after implementation, this has greatly increased the average work order of each location and significantly impacted our bottom line. Look for further investments to made in the technology that we offer.
For the six months ending March 31, 2017, CAR Holdings had a gross revenue of almost $2M and a net income before taxes of slightly less than $35,000. We are investing heavily in infrastructure, technology improvements, and employees as we achieve our long-term vision of being a dominant player in the industry.
In looking at the financials, please note that the auto repair and service industry is seasonal, with April and November being the typical months with the highest revenue.
Also note that we expect the gross revenue to substantially increase given the acquisition of the three locations in May 2017.
We trust everyone has received their dividend cheque distributing our retained earnings to-date. Please let us know if this cheque has not yet been received.
The Road Ahead
The upcoming 12 months will continue to be busy for CAR Holdings. We are targeting the acquisition of a few more locations, and continue to improve our operations as we leverage our infrastructure and technology.
One of our biggest challenges is the recruiting of licensed automotive technicians. It is indeed a hot labour market for technicians as the pace of new graduates is not keeping up with increasing demand. We continue to explore options in recruiting and retaining the best technicians in the industry.
Given the further acquisitions that we would like to complete in the next 12 months, CAR Holdings is continuing to raise funds by way of Class B Common Shares. If you or anyone that you know may be interested in investing in CAR Holdings and meets the qualifications, please let us know.
You can expect another investor update in July, and we will report on the progress for the prior quarter. Please do not hesitate to reach out to us in the interim if you have any questions. We're always available.
As we say at CAR Holdings, Onwards & Upwards!
Executive Team at CAR Holdings