AutoCanada Income Fund releases financial results for the reporting period ended March 31, 2009:



    
    A conference call to discuss the results for the year and three month
    period ended March 31, 2009 will be held on May 11, 2009 at 4:00 p.m.
    Eastern time. To participate in the conference call, please dial
    1-800-594-3615 or (416) 644-3426 approximately 10 minutes prior to the
    call. A live and archived audio webcast of the conference call will also
    be available on the Fund's website www.autocan.ca.
    

    EDMONTON, May 8 /CNW/ - AutoCanada Income Fund (the "Fund") (TSX: ACQ.UN)
today announced financial results for the three month period ended March 31,
2009.

    
    -------------------------------------------------------------------------

                    2009 First Quarter Operating Results

        -  Revenue decreased $25.3 million or 12.8% largely as a result of a
           decrease in the average transaction price of new and used
           vehicles. The number of new vehicles retailed decreased by
           171 units
        -  Gross profit decreased by $1.9 million or 5.7% as a result of
           reduced new vehicle sales and profitability as well as reduced
           high margin finance and insurance sales
        -  Same store revenue decreased by 19.8%
        -  Same store gross profit decreased by 12.8%
        -  EBITDA was $2.2 million vs. $4.6 million in Q1 of 2008, a 52.2%
           decrease
    -------------------------------------------------------------------------

    First Quarter 2009 Summary

    -   Net earnings were $1.1 million which was $2.3 million lower than the
        comparable figure of $3.4 million in 2008.

    -   For the period from January 1, 2009 to March 31, 2009, the Fund
        generated a net earnings of $1.1 million, or basic earnings per unit
        of $0.053, standardized distributable cash of negative $0.215 per
        unit, adjusted distributable cash of $0.095 per unit, and declared
        distributions of $0.125 per unit, for a standardized payout ratio of
        negative 58.1% and an adjusted payout ratio of positive 131.9%.

    -   Same store revenue and gross profit decreased by 19.8% and 12.8%
        respectively in the three months ended March 31, 2009, compared to
        the results of the Fund to the first quarter of the 2008 fiscal year.

    -   Revenue from existing and new dealerships decreased 12.8% to
        $172.8 million in the three months ended March 31, 2009 from the
        $198.1 million that was generated by the Fund in the first quarter of
        2008.

    -   Gross profit from existing and new dealerships decreased 5.7% to
        $31.2 million in the three months ended March 31, 2009 from the
        $33.1 million that was generated by the Fund in the 2008 year.

    -   EBITDA decreased 52.2% to $2.2 million in the quarter ended March 31,
        2009 from the $4.6 million that was generated by the Fund in the
        first quarter of 2008.
    

    Pat Priestner, Chairman and CEO of AutoCanada Income Fund stated:
"Although we were overall pleased with the results, given current market
challenges, there remain several critical issues that need to be resolved
before we consider reinstating distributions. This would include: the outcome
of the filing by Chrysler LLC for Chapter 11 creditor protection, the
immediate need to have floor plan financing available for our import
dealerships and our immediate need to come to an agreement with Chrysler
Financial Canada, General Motors Acceptance Corporation and other third party
lenders with respect to floor plan financing for our Chrysler, Dodge, Jeep
dealerships as well as our revolving term facility, as well, of course,
confidence that the economy in general, and specifically as it relates to auto
sales, evidences real improvement."

    
    Highlights of Events Subsequent to March 31, 2009

    -   Chrysler LLC files for Chapter 11 creditor protection in the United
        States.

    -   Chrysler Canada has not filed for creditor protection in Canada.

    -   Chrysler Canada has idled manufacturing operations until the Chrysler
        LLC restructuring is completed.

    -   Chrysler Financial Canada has temporarily suspended all wholesale
        floorplan financing.

    -   Chrysler has signed a financial services arrangement in principle
        with General Motors Acceptance Corporation ("GMAC") to become the
        preferred retail and wholesale lender for Chrysler, Dodge, and Jeep
        dealerships.
    

    Pat Priestner, Chairman and CEO of AutoCanada Income Fund stated: "As a
result of Chrysler Financial Canada's announcement that future funding under
our wholesale floor plan has been suspended, our primary focus has been to
obtain new floor plan financing for our import dealerships. Failure to obtain
this financing may jeopardize our ability to operate these dealerships. One of
the most significant challenges we face in accomplishing this critical task
will be to negotiate with Chrysler Financial Canada the release of sufficient
security to provide, in turn, adequate security to a potential new floor plan
financier."

    
    DISTRIBUTIONS

    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 reviews the distributions
on a monthly basis.
    On February 13, 2009, in view of the continued market unpredictability,
general economic deterioration both within the auto industry and generally,
rising unemployment, and tight credit markets, the Board of Trustees had
concluded that it was prudent to reduce monthly distribution from $0.0833 per
unit ($1.00 per unit annually) to $0.0417 per unit ($0.50 per unit annually),
commencing February 2009, in order to provide additional financial
flexibility.
    On March 14, 2009, in response to the continued deteriorating retail
credit markets and continued economic decline, the Board of Trustees
determined it would be prudent to temporarily suspend distributions until such
times as market conditions stabilize.
    The following table summarizes the distributions declared by the Fund for
the period from January 1, 2009 to March 31, 2009.

    
    (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 distributions were declared. No record date or payment date is
        applicable.

    Distributions are paid on Fund Units and Exchangeable Units. As of March
31, 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 ended March 31, 2009, the Fund declared
distributions of $0.125 per Fund Unit and Exchangeable Unit to Unitholders.
The Fund reviews its distribution policy on a monthly basis.

    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 %)               The Fund   The Fund   The Fund   The Fund

                                      Q2         Q3         Q4         Q1
                                     2007       2007       2007       2008
    Income Statement Data
      New vehicles                  117,204    133,853    111,683    107,688
      Used vehicles                  62,389     59,114     50,468     55,712
      Parts, service & collision
       repair                        23,228     23,142     23,863     23,536
      Finance, insurance & other     11,890     12,905     10,697     11,180
                                   ------------------------------------------
    Revenue                         214,711    229,014    196,711    198,116
                                   ------------------------------------------

      New vehicles                    8,312      9,024      8,176      7,012
      Used vehicles                   6,082      4,943      3,746      4,393
      Parts, service & collision
       repair                        11,305     11,267     11,494     11,082
      Finance, insurance & other     11,078     12,067     10,106     10,579
                                   ------------------------------------------
    Gross profit                     36,777     37,301     33,522     33,066
                                   ------------------------------------------

    Gross profit %                    17.1%      16.3%      17.0%      16.7%
    Sales, general & admin expenses  27,522     26,905     25,654     26,317
    SG&A exp. as % of gross profit    74.8%      72.1%      76.5%      79.6%
    Floorplan interest expense        2,414      2,679      2,432      2,034
    Other interest & bank charges       326        312        296        256
    Future income taxes              10,137        239     (1,182)       330
    Net earnings(4)                  (4,582)     6,372      5,466      3,358
    EBITDA(1)(4)                      6,743      7,600      5,310      4,621

    Operating Data
    Vehicles (new and used) sold      6,089      6,404      5,363      5,552
    New retail vehicles sold          2,866      3,344      2,618      2,462
    New fleet vehicles sold             535        543        569        716
    Used retail vehicles sold         2,688      2,517      2,176      2,374
    Number of service & collision
     repair orders completed         58,157     58,138     57,552     61,169
    Absorption rate(2)                  94%       104%        93%        90%
    No. of dealerships                   18         19         19         19
    No. of same store dealerships(3)      9         11         11         13
    No. of service bays at period
     end                                256        260        260        260
    Same store revenue growth(3)       6.6%       8.2%       5.3%     (0.6)%
    Same store gross profit
     growth(3)                        13.4%       7.2%       6.5%       0.7%

    Balance Sheet Data
    Cash and cash equivalents        21,077     20,179     18,014     15,298
    Accounts receivable              35,980     39,940     34,274     36,411
    Inventories                     132,814    147,419    142,128    132,549
    Revolving floorplan facilities  133,731    152,390    143,655    134,023


    (In thousands of dollars
     except Operating Data and
     gross profit %)               The Fund   The Fund   The Fund   The Fund

                                      Q2         Q3         Q4         Q1
                                     2008       2008       2008       2009
    Income Statement Data
      New vehicles                  128,371    118,807     96,634     87,176
      Used vehicles                  61,223     57,790     47,605     49,550
      Parts, service & collision
       repair                        26,610     26,492     27,105     26,390
      Finance, insurance & other     13,121     13,597     11,023      9,683
                                   ------------------------------------------
    Revenue                         229,325    216,686    182,367    172,799
                                   ------------------------------------------

      New vehicles                    9,699      9,266      6,729      5,828
      Used vehicles                   5,180      5,156      3,671      3,810
      Parts, service & collision
       repair                        12,896     13,290     13,090     12,811
      Finance, insurance & other     12,244     12,629     10,137      8,732
                                   ------------------------------------------
    Gross profit                     40,019     40,341     33,627     31,181
                                   ------------------------------------------

    Gross profit %                    17.5%      18.6%      18.4%      18.0%
    Sales, general & admin expenses  29,916     30,491     28,157     27,813
    SG&A exp. as % of gross profit    74.8%      75.5%      83.7%      89.2%
    Floorplan interest expense        1,895      1,693      1,443        970
    Other interest & bank charges       396        458        441        374
    Future income taxes                 148     (1,869)    (8,579)        97
    Net earnings(4)                   6,906    (38,318)   (67,121)     1,054
    EBITDA(1)(4)                      8,022      7,975      3,868      2,230

    Operating Data
    Vehicles (new and used) sold      6,576      6,462      5,124      5,149
    New retail vehicles sold          3,471      3,245      2,376      2,219
    New fleet vehicles sold             470        532        526        473
    Used retail vehicles sold         2,635      2,685      2,222      2,385
    Number of service & collision
     repair orders completed         72,227     74,300     69,560     70,021
    Absorption rate(2)                 100%        99%        94%        84%
    No. of dealerships                   20         21         22         22
    No. of same store dealerships(3)     14         14         14         16
    No. of service bays at period
     end                                279        284        284        319
    Same store revenue growth(3)     (3.8)%    (17.1)%    (16.7)%    (19.8)%
    Same store gross profit
     growth(3)                         0.2%     (3.3)%     (8.0)%    (12.8)%

    Balance Sheet Data
    Cash and cash equivalents        18,459     19,194     19,592     12,522
    Accounts receivable              35,374     39,390     31,195     33,821
    Inventories                     135,447    134,565    139,948    116,478
    Revolving floorplan facilities  131,505    135,562    137,453    114,625

    (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 sales results for the three month ended
March 31, 2009 on a same store basis by revenue source and compares these
results to the same period in 2008.

                    Same Store Revenue and Vehicles Sold
    -------------------------------------------------------------------------

                                            For the Three-Month Period Ended
                                           ----------------------------------
    (In thousands of dollars except %         March 31,  March 31,         %
     change and vehicle data)                   2009       2008       Change
                                                ----       ----       ------

    Revenue Source

    New vehicles                                74,323    101,966    (27.1)%
    Used vehicles                               45,021     53,110    (15.2)%
    Finance, insurance and other                 8,424     10,581    (20.4)%
                                                 -----     ------    -------
    Subtotal                                   127,768    165,657    (22.9)%
    Parts, service and collision repair         23,057     22,366       3.1%
                                                ------     ------       ----
    Total                                      150,825    188,023    (19.8)%
                                               -------    -------    -------
                                               -------    -------    -------

    New vehicles - retail sold                   1,935      2,367    (18.3)%
    New vehicles - fleet sold                      442        647    (31.7)%
    Used vehicles sold                           2,117      2,269     (6.7)%
                                                 -----      -----     ------
    Total                                        4,494      5,283    (14.9)%
                                                 -----      -----    -------
                                                 -----      -----    -------
    Total vehicles retailed                      4,052      4,636    (12.6)%
                                                 -----      -----    -------
                                                 -----      -----    -------
    


    About AutoCanada

    The Fund commenced business operations on May 11, 2006, when it completed
an initial public offering (the "IPO") of 10,209,500 trust units ("Fund
Units"), at a price of $10 per unit, for aggregate gross proceeds of $102.095
million. The costs of issuance of the units were $8.523 million. Concurrent
with the closing of the IPO, the Fund used the net cash proceeds from the IPO
to acquire a 50.4% indirect interest in AutoCanada LP which used such net
proceeds to acquire, through various limited partnerships, the net assets (the
"Acquired Business") of Canada One Auto Group ("CAG" or the "Vendors"). In
connection with this transaction, 10,047,500 Exchangeable Units were issued to
the Vendors in the amount of $10 per unit for a total of $100.475 million. On
May 31, 2006, the underwriters exercised their over-allotment option for
740,000 additional units for $7.400 million thereby increasing the interest of
the Fund to 54.05%.
    In August of 2008, the Fund announced it had received regulatory approval
from the Toronto Stock Exchange to purchase for cancellation, from time to
time, the Fund's issued and outstanding units subject to limits discussed
later in this report. As at March 31, 2009, the Fund has cancelled all
repurchased units. As a result of the normal course issuer bid, there were
10,573,430 Fund units issued and outstanding. The Fund now owns an indirect
53.2% interest in AutoCanada LP.
    AutoCanada is Canada's only publicly traded entity with interests
exclusively in the operation of franchised automobile dealerships. Through its
53.2% interest in AutoCanada LP, it operates or manages 22 franchised
automobile dealerships in six provinces and has over 1,110 employees. It
currently sells various new vehicle brands, including Chrysler, Dodge,
Jeep(R), Nissan, Infiniti, Hyundai, Mitsubishi, Subaru and Volkswagen. In
2008, its franchised automobile dealerships sold approximately 23,700 vehicles
and processed approximately 277,200 service and collision repair orders in 284
service bays, generating revenue of approximately $826.5 million.

    Forward-Looking Statements

    Certain statements contained in management's discussion and analysis 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 management's
discussion and analysis include:
    
    -   assumptions over the effect on the Fund of Chrysler LLC filing for
        Chapter 11 creditor protection;
    -   assumptions regarding the future sources of floor plan financing and
        the effect on the Fund;
    -   expectations that Chrysler LLC will emerge from creditor protection;
    -   assumptions over the effect on the Fund if Chrysler Canada or
        Chrysler Financial Canada seek creditor protection;
    -   expectation that Chrysler Financial Canada may wind down its
        operations;
    -   assumptions on the effect of the idling of Chrysler Canada
        manufacturing operations;
    -   expectation that the Fund will be able to finance its CDJ dealerships
        with GMAC;
    -   assumptions over the proposed GMAC floor plan financing;
    -   expectations over whether future cash flows are sufficient to meet
        future obligations of the Fund;
    -   future challenges faced in securing floorplan financing;
    -   our plans for future growth and effects of future growth on financial
        performance;
    -   effect of the Canadian economy on automotive sales;
    -   expectations of future capital spending and its effect on future
        financial performance and growth;
    -   our assumption on the amount of time it make take for an acquisition
        or open point to achieve normal operating results;
    -   our determination of the possible effects of future impairment
        charges on the Fund's assets;
    -   the possible plans for or terms of any future credit agreement;
    -   our determination of the effects of the current and/or future credit
        agreements on the Fund's financial performance;
    -   management's goals for maintaining optimal levels of liquidity;
    -   expectations of sufficiency of future cash flows;
    -   plans for future ADP conversions;
    -   assumptions and expectations for dealership relocations;
    -   plans for management of income taxes and possible changes in
        organizational structure;
    -   plans for convergence with IFRS;
    -   predictions for future economic data such as vehicle unit sales,
        vehicle prices, and margins on vehicle sales.
    

    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. We caution the reader that the
following list of assumptions is not exhaustive. The material factors and
assumptions used to develop the forward-looking statements include but are not
limited to:
    
    -   no significant adverse changes to the automotive market, competitive
        conditions, the supply and demand of vehicles, parts and service, and
        finance and insurance products or the political, economic and social
        stability of the jurisdictions in which we operate;
    -   no significant construction delays that may adversely affect the
        timing of dealership relocations;
    -   no significant disruption of our operations such as may result from
        harsh weather, natural disaster, accident, civil unrest, or other
        calamitous event;
    -   no significant unexpected technological event or commercial
        difficulties that adversely affect our operations;
    -   continuing availability of economical capital resources; demand for
        our products and our cost of operations;
    -   no significant adverse legislative and regulatory changes; and
    -   stability of general domestic economic, market, and business
        conditions
    

    Because actual results or outcomes could differ materially from those
expressed in any forward-looking statements, investors should not place undue
reliance on any such forward-looking statements. By their nature,
forward-looking statements involve numerous assumptions, inherent risks and
uncertainties, both general and specific, which contribute to the possibility
that the predicted outcomes will not occur. The risks, uncertainties and other
factors, many of which are beyond our control, that could influence actual
results include, but are not limited to:
    
    -   the possibility of a wind down of operations Chrysler LLC, Chrysler
        Canada and/or Chrysler Financial Canada;
    -   the potential restructuring of Chrysler LLC, Chrysler Canada and/or
        Chrysler Financial Canada;
    -   the length in time in which Chrysler Canada manufacturing operations
        are idled;
    -   the ability to secure floorplan financing for the Fund's dealerships;
    -   the ability of the Fund to satisfy future financial covenants;
    -   our access to capital due to uncertainty in the capital markets;
    -   rapid appreciation or depreciation of the Canadian dollar relative to
        the U.S. dollar;
    -   a sustained downturn in consumer demand and economic conditions in
        key geographic markets;
    -   the ability of consumers to access automotive loans and leases;
    -   competitive actions of other companies and generally within the
        automotive industry;
    -   our dependence on sales of new vehicles to achieve sustained
        profitability;
    -   our suppliers' ability to provide a desirable mix of popular new
        vehicles;
    -   the ability to continue financing inventory under similar interest
        rates;
    -   our suppliers' ability to continue to provide manufacturer incentive
        programs;
    -   the loss of key personnel and limited management and personnel
        resources;
    -   the ability to refinance credit agreements in the future;
    -   changes in applicable environmental, taxation and other laws and
        regulations as well as how such laws and regulations are interpreted
        and enforced;
    -   risks inherent in the ability to generate sufficient cash flow from
        operations to meet current and future obligations
    

    The foregoing factors are not exhaustive and are further discussed in the
Fund's Annual Information Form dated March 23, 2009 which is filed on SEDAR at
www.sedar.com.
    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 are 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
    -------------------------------------------------------------------------
    (expressed in Canadian dollar thousands)
                                                     March 31,   December 31,
                                                         2009           2008
                                                   (Unaudited)

    ASSETS                                                  $              $

    Current assets
    Cash and cash equivalents                          12,522         19,592
    Restricted cash                                     3,456          3,238
    Accounts receivable                                33,821         31,195
    Inventories (note 3)                              116,478        139,948
    Prepaid expenses                                    1,991          1,565
                                                    ----------     ----------
                                                      168,268        195,538

    Property & equipment                               17,329         17,227
    Intangible assets                                  43,700         43,700
    Future income taxes (note 2(a) & 10)                  488            585
    Other assets                                           54             54
                                                    ----------     ----------
                                                      229,839        257,104
                                                    ----------     ----------
                                                    ----------     ----------
    LIABILITIES

    Current liabilities
    Accounts payable and accrued liabilities           20,696         21,990
    Revolving floorplan facilities (note 4)           114,625        137,453
    Distributions payable                                   -          1,656
    Current portion of long-term debt (note 5)            559            570
                                                    ----------     ----------
                                                      135,880        161,669

    Long-term debt (note 5)                            25,438         25,522
                                                    ----------     ----------
                                                      161,318        187,191
                                                    ----------     ----------

    Going concern and economic dependence (note 1)
    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))                     3,861          3,822
    Deficit                                          (125,775)      (124,344)
                                                    ----------     ----------
                                                       68,521         69,913
                                                    ----------     ----------
                                                      229,839        257,104
                                                    ----------     ----------
                                                    ----------     ----------

    Approved on behalf of the Fund:

    (Signed) "Gordon R. Barefoot"  Trustee   (Signed) "Robin Salmon"  Trustee

    The accompanying notes are an integral part of these consolidated
    financial statements.



    AutoCanada Income Fund
    Interim Consolidated Statement of Operations, Comprehensive Income and
    Deficit
    -------------------------------------------------------------------------
    (expressed in Canadian dollar thousands except unit and per unit amounts)

                                                        Three          Three
                                                 Months ended   Months ended
                                                     March 31,      March 31,
                                                         2009           2008
                                                   (unaudited)    (unaudited)
                                                                   (Restated
                                                                 - Note 2(a))

                                                            $              $
    Revenue
    Vehicles                                          145,946        174,092
    Parts, service and collision repair                26,395         23,536
    Other                                                 458            488
                                                -----------------------------
                                                      172,799        198,116
    Cost of sales (note 3)                            141,618        165,050
                                                -----------------------------
    Gross profit                                       31,181         33,066
                                                -----------------------------
    Expenses
    Selling, general and administrative                27,813         26,317
    Interest                                            1,345          2,290
    Amortization                                          872            771
                                                -----------------------------
                                                       30,030         29,378
                                                -----------------------------
    Earnings before income taxes                        1,151          3,688

    Future income taxes (note 2(a) & 10)                   97            330
                                                -----------------------------
    Net earnings & comprehensive income for
     the year                                           1,054          3,358
                                                -----------------------------
    Deficit, beginning of year - as previously
     stated                                          (124,344)       (16,968)
    Change in accounting policy related to
     future income taxes (note 2(a))                        -          7,979
                                                -----------------------------
    Deficit, beginning of year - as restated         (124,344)        (8,989)
    Distributions declared (note 8)                    (2,485)        (5,062)

    Deficit, end of year                             (125,775)       (10,693)
                                                -----------------------------
                                                -----------------------------
    Earnings per unit

    Basic                                               0.053          0.166
                                                -----------------------------
                                                -----------------------------
    Diluted                                             0.053          0.166
                                                -----------------------------
                                                -----------------------------
    Weighted average units

    Basic                                          19,880,930     20,257,000
                                                -----------------------------
                                                -----------------------------
    Diluted                                        19,880,930     20,257,000
                                                -----------------------------
                                                -----------------------------

    The accompanying notes are an integral part of these consolidated
    financial statements.



    AutoCanada Income Fund
    Interim Consolidated Statement of Cash Flows
    -------------------------------------------------------------------------
    (expressed in Canadian dollar thousands)
                                                        Three          Three
                                                 Months Ended   Months Ended
                                                     March 31,      March 31,
                                                         2009           2008
                                                   (unaudited)    (unaudited)
                                                                   (Restated
                                                                   Note 2(a))

    Cash provided by (used in)                              $              $

    Operating activities
    Net earnings for the period                         1,054          3,358
    Items not affecting cash
      Future income taxes (note 10)                        97            330
      Unit-based compensation (note 7(e))                  39             59
      Amortization                                        872            771
      Loss (gain) on disposal of property &
       equipment                                            9             (6)
                                                -----------------------------
                                                        2,071          4,512
    Net change in non-cash working capital
     balances                                          (5,284)        (1,773)
                                                -----------------------------
                                                       (3,213)         2,739
                                                -----------------------------
    Investing activities
    Purchase of property & equipment                   (1,065)          (414)
    Proceeds on sale of property & equipment               44             24
    Restricted cash                                      (218)          (108)
                                                -----------------------------
                                                       (1,239)          (498)
                                                -----------------------------
    Financing activities
    Proceeds from long-term debt                          286            208
    Repayment of long-term debt                          (419)          (103)
    Distributions paid to unitholders                  (2,485)        (5,062)
                                                -----------------------------
                                                       (2,618)        (4,957)
                                                -----------------------------
    Decrease in cash                                   (7,070)        (2,716)

    Cash and cash equivalents, beginning of
     period                                            19,592         18,014
                                                -----------------------------
    Cash and cash equivalents, end of period           12,522         15,298
                                                -----------------------------
                                                -----------------------------
    Supplementary information
      Cash interest paid                                1,486          2,418
      Transfer of inventory to property &
       equipment                                          176            356
      Transfer of property & equipment to
       inventory                                          252            253

    The accompanying notes are an integral part of these consolidated
    financial statements.
    





For further information:

For further information: Tom Orysiuk, CA, Executive Vice-President and
Chief Financial Officer, Phone: (780) 732-3139, Email: torysiuk@autocan.ca

Organization Profile

AUTOCANADA INCOME FUND

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