AutoCanada Income Fund releases financial results for the reporting period ended September 30, 2007:



    A conference call to discuss third quarter results will be held on
    Tuesday, November 13, 2007 at 1:00 p.m. MST, 3:00 p.m. EST. To
    participate in the conference call, please dial 1-866-249-1964 or 416-
    644-3419 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, Nov. 12 /CNW/ - AutoCanada Income Fund (the "Fund") (TSX:
ACQ.UN) today announced financial results for the three-month period ended
September 30, 2007.

    
              -------------------------------------------------
                   Third Quarter 2007 Operating Highlights

                   -  Revenue increased by 20.6%
                   -  Gross profit increased by 21.0%
                   -  Same store revenue increased by 5.9%
                   -  Same store gross profit increased by 4.0%
                   -  EBITDA increased by 19.4%
              -------------------------------------------------
    

    In commenting on the results of the past quarter Patrick Priestner,
AutoCanada's founder and Chief Executive Officer commented that "We are very
pleased to report our 6th strong quarter in a row. We anticipate that we will
have a strong finish to the year as a result of recently announced pricing
incentives by the manufacturers that has resulted in reducing the pricing
disparity between Canada and the United States."
    Mr. Priestner further noted that "We are pleased that we continue to see
growth from our existing stores."

    
    Third Quarter 2007 Summary

    -   For the third quarter of 2007, the Fund generated standardized
        distributable cash of $0.294 per unit and adjusted distributable cash
        of $0.365 per unit, and declared distributions of $0.250 per unit,
        for a standardized payout ratio of 84.9% and an adjusted payout ratio
        of 68.5%.

    -   Revenue from all dealerships increased by 20.6% to $229.0 million in
        the third quarter of 2007 from $189.9 million in the same quarter in
        2006.

    -   Gross profit from all dealerships increased by 21.0% to $37.3 million
        in the third quarter of 2007 from $30.8 million in the same quarter
        in 2006.

    -   Same store revenue and gross profit increased by 5.9% and 4.0%
        respectively in the third quarter of 2007, compared to the same
        quarter in 2006.

    -   EBITDA increased by 19.4% to $7.6 million in the third quarter of
        2007 from $6.4 million in the same quarter in 2006.

    -   Net earnings increased by 18.2% to $6.2 million in the third quarter
        of 2007 from $5.2 million in the same quarter in 2006.

    -   On July 13, 2007, the Fund announced that it had entered into credit
        and management agreements with CAG to finance the opening of a Nissan
        Dealership Open Point in Prince George, British Columbia called
        "Northland Nissan". The Northland Nissan Dealership commenced
        operations on August 31, 2007 in a temporary facility with a two
        vehicle showroom and four service bays. The dealership is anticipated
        to be relocated to a new facility in the 4th quarter of 2008 which
        shall be designed to Nissan Canada Inc. image standards and shall
        provide for an eight vehicle showroom and ten service bays.

    Highlights of Events Subsequent to September 30, 2007

    -   On November 5, 2007, AutoCanada Income Fund announced that it has
        signed a Letter of Understanding with Mitsubishi Motor Sales of
        Canada Inc. which, subject to completion of the application process,
        awards to the Fund a Mitsubishi open point dealership in Prince
        George, British Columbia. The new dealership will be owned by the
        Fund and carry on business under the name of Northland Mitsubishi.
        The Fund intends to operate the dealership out of a new facility,
        anticipated to be completed by fourth quarter, 2008, and which shall
        be designed to Mitsubishi Motor Sales of Canada Inc. image design
        standards. The approximately 7,000 sq. ft. facility shall provide for
        a three vehicle showroom, and five service bays.
    

    Distributable Cash and Cash Distributions

    The Fund's policy is to distribute annually to Unitholders available cash
provided by operations after cash required for capital expenditures, working
capital reserves, growth capital reserves and other reserves considered
advisable by the Trustees of the Fund. The policy allows the Fund to make
stable monthly distributions to its Unitholders based on the Fund's estimate
of distributable cash for the year. The Fund pays cash distributions on or
about the 15th of each month to Unitholders of record on the last business day
of the previous month.
    The following table summarizes the distributions declared by the Fund for
the period from January 1, 2007 to September 30, 2007.

    
    (In thousands of dollars)

                                               Exchangeable
                                 Fund Units       Units           Total
                                -------------  -------------  -------------
    Record date   Payment date  Declared Paid  Declared Paid  Declared Paid
                                   $       $       $      $      $       $
    January 31,    February 15,
     2007           2007          912     912     775    775   1,687   1,687
    February 28,   March 15,
     2007           2007          912     912     775    775   1,687   1,687
    March 31,      April 16,
     2007           2007          912     912     775    775   1,687   1,687
    April 30,      May 15,
     2007           2007          912     912     775    775   1,687   1,687
    May 31,        June 15,
     2007           2007          912     912     775    775   1,687   1,687
    June 29,       July 16,
     2007           2007          912     912     775    775   1,687   1,687
    July 31,       August 15,
     2007           2007          912     912     775    775   1,687   1,687
    August 31,     September 17,
     2007           2007          912     912     775    775   1,687   1,687
    September 28,  October 15,
     2007           2007(1)       912       -     775      -   1,687       -
                              -----------------------------------------------
                                8,208   7,296   6,975  6,200  15,183  13,496

    (1) Distributions payable to all Unitholders in the amount of $1,687 as
        at September 30, 2007 were paid in October, 2007.

    Distributions are paid on Fund Units and Exchangeable Units. As of
September 30, 2007 the following numbers of units were outstanding:

        Fund Units                                   10,949,500
        Exchangeable Units                            9,307,500
                                                   -------------

                                                     20,257,000
                                                   -------------
                                                   -------------
    

    During the three-month and nine-month periods ended September 30, 2007,
the Fund declared distributions of $0.250 and $0.750 respectively per Fund
Unit and Exchangeable Unit to Unitholders. The distributions in the period
ended September 30, 2007 were funded from cash flow generated from operations.
The Fund's IPO prospectus contemplated an initial distribution of $0.0564 per
unit for the month of May, 2006 and thereafter monthly distributions of
$0.0833 per unit or $1 per year in aggregate. The Fund reviews its
distribution policy on a periodic basis.
    For information purposes, the Fund has also provided a compilation of
results for the year ended December 31, 2006, combining financial results for
the period from May 11, 2006 to December 31, 2006 with selected unaudited
results of operations of Canada One Auto Group ("CAG"), the Fund's predecessor
for the period from January 1, 2006 to May 10, 2006.
    References to "standardized distributable cash" and "adjusted
distributable cash" are to cash flow provided by operating activities
available for distribution to 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.

    SELECTED FINANCIAL INFORMATION AND RESULTS FROM OPERATIONS

    The following table shows the unaudited results of: Combined results of
CAG and the Fund for the three-month period ended June 30, 2006, results of
the Fund for the 51-day period ended June 30, 2006, the three-month period
ended September 30, 2006, the three-month period ended December 31, 2006, the
audited results of the Fund from May 11, 2006 to December 31, 2006, the
unaudited results for the three-month period ended March 31, 2007, the
three-month period ended June 30, 2007, and the three-month period ended
September 30, 2007. 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    The Fund
     Operating Data and gross profit %)   &
                                         CAG    The Fund  The Fund  The Fund
                                          Q2        Q2        Q3        Q4
                                         2006      2006      2006      2006

    Income Statement Data Revenue      184,680   105,992   189,861   176,079
      New vehicles                     102,431    59,044   106,424    98,970
      Used vehicles                     53,546    30,487    53,897    46,425
    Parts, service & collision repair   18,738    10,734    19,632    21,410
      Finance, insurance & other         9,965     5,727     9,908     9,274
    Gross profit                        29,265    17,775    30,818    28,930
      New vehicles                       6,782     4,190     6,792     6,998
      Used vehicles                      4,766     3,294     5,563     3,614
      Parts, service & collision repair  8,712     5,014     8,721     9,514
      Finance, insurance & other         9,005     5,277     9,742     8,804
      Gross profit %                     15.8%     16.8%     16.2%     16.4%
    Sales, general & admin expenses     21,469    12,245    22,481    21,682
    Floorplan interest expense           2,153     1,256     1,854     2,085
    Other interest & bank charges           93        24       117       405
    Future income taxes                      -         -         -         -
    Net earnings(1)(5)                   4,761     3,631     5,220     3,623
    EBITDA(2)(5)                         5,547     4,249     6,366     4,906

    Operating Data
    Vehicles (new and used) sold         5,068     3,023     5,369     4,690
    New retail vehicles sold             2,465     1,515     2,741     2,199
    New fleet vehicles sold                372       211       371       525
    Used retail vehicles sold            2,231     1,297     2,257     1,966
    Number of service & collision
     repair orders completed            57,372    32,565    54,345    55,393
    Absorption rate(3)                     95%       n/a       97%       96%
    No. of dealerships                      14        14        14        16
    No. of service bays at period end      223       223       223       245
    Same store revenue growth(4)            5%       n/a      3.8%     10.4%
    Same store gross profit growth(4)      21%       n/a     12.5%      6.3%

    Balance Sheet Data
    Cash and cash equivalents           20,271    20,271    20,265    20,880
    Accounts receivable                 25,875    25,875    30,562    27,742
    Inventories                        145,888   145,888   101,252   112,680
    Revolving floorplan facilities     146,283   146,283   103,297   113,357


    (In thousands of dollars except
     Operating Data and gross profit %)
                                      The Fund  The Fund  The Fund  The Fund
                                                    Q1        Q2        Q3
                                         2006      2007      2007      2007

    Income Statement Data Revenue      471,932   194,379   214,711   229,014
      New vehicles                     264,438   109,862   117,204   133,853
      Used vehicles                    130,809    53,020    62,389    59,114
    Parts, service & collision repair   51,776    21,908    23,228    23,142
      Finance, insurance & other        24,909     9,590    11,890    12,905
    Gross profit                        77,523    31,292    36,777    37,301
      New vehicles                      17,980     7,000     8,312     9,024
      Used vehicles                     12,471     4,914     6,082     4,943
      Parts, service & collision repair 23,249    10,223    11,305    11,267
      Finance, insurance & other        23,823     9,155    11,078    12,067
      Gross profit %                     16.4%     16.1%     17.1%     16.3%
    Sales, general & admin expenses     56,408    23,634    27,522    26,905
    Floorplan interest expense           5,195     2,069     2,414     2,679
    Other interest & bank charges          546       316       326       312
    Future income taxes                      -         -    19,107       443
    Net earnings(1)(5)                  12,474     4,483   (13,362)    6,168
    EBITDA(2)(5)                        15,521     5,424     6,743     7,600

    Operating Data
    Vehicles (new and used) sold        13,082     5,440     6,089     6,404
    New retail vehicles sold             6,455     2,295     2,866     3,344
    New fleet vehicles sold              1,107       886       535       543
    Used retail vehicles sold            5,520     2,259     2,688     2,517
    Number of service & collision
     repair orders completed           142,303    57,876    58,157    58,138
    Absorption rate(3)                     94%       92%       94%      104%
    No. of dealerships                      16        17        18        19
    No. of service bays at period end      245       250       256       260
    Same store revenue growth(4)           n/a     24.1%      6.6%      5.9%
    Same store gross profit growth(4)      n/a     20.1%     13.4%      4.0%

    Balance Sheet Data
    Cash and cash equivalents           20,880    24,268    21,077    20,179
    Accounts receivable                 27,742    31,200    35,980    39,940
    Inventories                        112,680   117,034   132,814   147,419
    Revolving floorplan facilities     113,357   118,974   133,731   152,390

    (1) Net earnings for CAG from January 1, 2006 to May 10, 2006 are net
        earnings as defined by GAAP plus income taxes, stock-based
        compensation and shareholder bonuses (including the performance
        component related to dealership management's compensation) to be
        consistent with the results of the Fund from May 11, 2006 to
        December 31, 2006.
    (2) EBITDA has been calculated as described under "Non-GAAP Measures"
        above. EBITDA for CAG is defined under "Non-GAAP Measures" with the
        exception that to facilitate comparison to the Fund we have added
        stock-based compensation and shareholder bonuses (including the
        performance component related to dealership management's
        compensation) expensed by CAG.
    (3) Absorption has been calculated as described under "Non-GAAP
        Measures" above.
    (4) 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.
    (5) 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 also cause 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 30, 2007 on a same store basis by revenue
source for the nine dealerships that were owned and operated for all of 2006
and 2005 and compares these results to the results of these stores for the
same period in 2006.

             Same Store Gross Profit and Gross Profit Percentage

                                          For the Three Months Ended
                                    Gross Profit            Gross Profit %
                               Sept.    Sept.            Sept.   Sept.
                                 30,      30,    %         30,     30,    %
    (In thousands of           2007     2006  Change     2007    2006  Change
     dollars except % change
     and gross profit %)

    Revenue Source
    New vehicles              5,450    4,896   11.3%     6.8%    6.6%    0.2%
    Used vehicles             2,615    3,458 (24.4)%     7.4%    9.9%  (2.5)%
    Parts, service &
     collision repair         7,104    6,186   14.8%    46.3%   43.5%    2.8%
    Finance, insurance
     & other                  7,274    7,045    3.2%    94.2%   96.3%  (2.1)%
                            -------- ------- -------- ------- ------- -------
    Total                    22,443   21,585    4.0%    16.3%   16.6%  (0.3)%
                            -------- ------- -------- ------- ------- -------
                            -------- ------- -------- ------- ------- -------


                                          For the Nine Months Ended
                                    Gross Profit            Gross Profit %
                               Sept.    Sept.            Sept.   Sept.
                                 30,      30,    %         30,     30,    %
    (In thousands of           2007     2006  Change     2007    2006  Change
     dollars except % change
     and gross profit %)

    Revenue Source
    New vehicles             15,333   12,889   19.0%     6.8%    6.6%    0.2%
    Used vehicles             8,645    8,673  (0.3)%     8.2%    8.7%  (0.5)%
    Parts, service &
     collision repair        21,578   18,335   17.7%    47.1%   45.0%    2.1%
    Finance, insurance
     & other                 20,388   18,561    9.8%    95.1%   95.9%  (0.8)%
                            -------- ------- -------- ------- ------- -------
    Total                    65,944   58,458   12.8%    16.6%   16.5%    0.1%
                            -------- ------- -------- ------- ------- -------
                            -------- ------- -------- ------- ------- -------
    

    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
$102,095,000. Concurrent with the closing of the IPO, the Fund used the
proceeds from the IPO to acquire an indirect 50.4% interest in AutoCanada
Limited Partnership ("AutoCanada LP") and AutoCanada LP used such net proceeds
to acquire the net assets (the "Purchased Assets") of Canada One Auto Group.
On May 31, 2006, as a result of the exercise of the over allotment option
granted to underwriters, the Fund acquired a further 3.65% interest in the
Purchased Assets and thus increased its total interest in the Purchased Assets
to 54.05%.
    AutoCanada is Canada's only publicly traded entity with interests
exclusively in the operation of franchised automobile dealerships. Through its
54% interest in AutoCanada LP, it operates or manages 19 franchised automobile
dealerships in six provinces and has over 940 employees. It currently sells
various new vehicle brands, including Chrysler, Dodge, Jeep(R), Hyundai,
Mitsubishi, Subaru, and, through managed dealerships, Nissan. In 2006, its
franchised automobile dealerships sold approximately 19,350 vehicles and
processed approximately 215,000 service and collision repair orders in
245 service bays, generating revenue of approximately $694 million.

    Forward Looking Statements

    Certain statements contained on this website include statements which
contain words such as "anticipate", "expect", "estimate", "could", "should",
"expect", "plan", "seek", "may", "intend", "likely", "will", "believe" and
similar expressions, statements relating to matters that are not historical
facts, and such statements of the beliefs, intentions and expectations of
AutoCanada about development, results and events which will or may occur in
the future, constitute "forward-looking information" within the meaning of
applicable Canadian securities legislation and are based on certain
assumptions and analysis made by AutoCanada and derived from experience and
perceptions. Forward-looking information on this website includes, but is not
limited to: trends and developments in the automotive industry; business
strategies and outlooks; expansion and growth of business and operations; and
anticipated acquisitions.
    All such forward-looking information is based on certain assumptions and
analyses made by AutoCanada in light of management's experience and perception
of historical trends, current conditions and expected future developments, as
well as other factors AutoCanada believes are appropriate in the
circumstances. The risks, uncertainties, and assumptions are difficult to
predict and may affect operations, and may include, without limitation:
foreign exchange fluctuations; equipment and labour shortages and inflationary
costs; general economic conditions; industry conditions; changes in applicable
environmental, taxation and other laws and regulations as well as how such
laws and regulations are interpreted and enforced; operating risks; risks
inherent in the ability to generate sufficient cash flow from operations to
meet current and future obligations; increased competition; stock market
volatility; opportunities available to or pursued by AutoCanada; the ability
to obtain financing as and when needed; and other factors, many of which are
beyond the control of AutoCanada. The foregoing factors are not exhaustive and
are further discussed in AutoCanada's final prospectus dated May 3, 2006 and
the Fund's Annual Information Form dated March 22, 2007 both of which are
filed on SEDAR at www.sedar.com.
    Actual results, performance or achievements could differ materially from
those expressed in, or implied by, this forward-looking information and,
accordingly, no assurance can be given that any of the events anticipated by
the forward-looking information will transpire or occur, or if any of them do
so, what benefits will be derived therefrom. Except as required by applicable
law, AutoCanada disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new information, future
events or otherwise. The forward-looking information contained on this website
are expressly qualified by this cautionary 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 and amortization. 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' 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 ratio of gross profits of a
franchised automobile dealership from parts, service and collision repair to
the fixed operating costs of the dealership. 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 and
do not include expenses pertaining to head office. 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, our Annual Information Form dated March 22,
2007, and www.sedar.com.



    
    AutoCanada Income Fund
    Interim Consolidated Balance Sheet
    -------------------------------------------------------------------------

    (expressed in Canadian dollar thousands)
                                                   September 30, December 31,
                                                           2007         2006
                                                     (unaudited)
    ASSETS                                                    $            $

    Current assets

    Cash and cash equivalents                            20,179       20,880
    Restricted cash                                       4,104        3,476
    Accounts receivable                                  39,940       27,742
    Inventories (note 5)                                147,419      112,680
    Due from vendors                                          -        2,640
    Prepaid expenses                                      1,447        1,419
                                                   ------------- ------------
                                                        213,089      168,837

    Property & equipment                                 11,639       11,839
    Intangible assets                                    79,956       79,034
    Goodwill                                             82,501       78,744
    Other assets                                             78           78
                                                   ------------- ------------

                                                        387,263      338,532
                                                   ------------- ------------
                                                   ------------- ------------
    LIABILITIES

    Current liabilities
    Accounts payable and accrued liabilities             26,000       23,521
    Revolving floorplan facilities (note 6)             152,390      113,357
    Distributions payable (note 10)                       1,687        1,687
    Due to related parties                                   99            -
    Current portion of long-term debt (note 7)              214           96
    Current portion of obligation
     under capital lease                                     75           72
                                                   ------------- ------------

                                                        180,465      138,733

    Long-term debt (note 7)                              10,443        5,535
    Obligation under capital lease                          235          240
    Future income taxes (note 12)                        19,550            -
                                                   ------------- ------------

                                                        210,693      144,508
                                                   ------------- ------------
    Contingencies (note 8)

    UNITHOLDERS' EQUITY

    Fund units (note 9(a) and (b))                      105,200      105,200
    Exchangeable units (note 9(c))                       88,847       88,847
    Contributed surplus (note 9(d))                         895          455
    Accumulated other comprehensive income                    -            -
    Deficit                                             (18,372)        (478)
                                                   ------------- ------------

                                                        176,570      194,024
                                                   ------------- ------------

                                                        387,263      338,532
                                                   ------------- ------------
                                                   ------------- ------------



    AutoCanada Income Fund
    Interim Consolidated Statement of Operations, Comprehensive Income
    and Retained Earnings (Deficit)
    -------------------------------------------------------------------------

    (expressed in Canadian
    dollar thousands except
    unit and per unit amounts)

                                Three        Three         Nine  Period from
                               Months       Months       Months       May 11,
                                Ended        Ended        Ended      2006 to
                            September    September    September    September
                             30, 2007     30, 2006     30, 2007     30, 2006
                           (unaudited)  (unaudited)  (unaudited)  (unaudited)
                                    $            $            $            $
    Revenue
    Vehicles                  205,269      169,492      568,024      264,389
    Parts, service and
     collision repair          23,141       19,969       68,277       30,703
    Other                         604          400        1,803          761
                           --------------------------------------------------

                              229,014      189,861      638,104      295,853
    Cost of sales             191,713      159,043      532,734      247,260
                           --------------------------------------------------

    Gross profit               37,301       30,818      105,370       48,593
                           --------------------------------------------------

    Expenses
    Selling, general and
     administrative            26,905       22,481       78,061       34,727
    Interest                    2,991        1,971        8,116        3,251
    Amortization                  794        1,146        2,354        1,764
                           --------------------------------------------------

                               30,690       25,598       88,531       39,742
                           --------------------------------------------------

    Net earnings before
     income taxes               6,611        5,220       16,839        8,851
    Future income taxes
     (note 12)                    443            -       19,550            -
                           --------------------------------------------------

    Net earnings (loss) &
     comprehensive income
     for the period
     (note 2(b))                6,168        5,220       (2,711)       8,851
    Retained earnings
     (deficit), beginning
     of period                (19,479)         801         (478)           -
    Distributions declared
     (note 10)                 (5,061)      (5,061)     (15,183)      (7,891)
                           --------------------------------------------------

    Retained earnings
     (deficit), end of
     period                   (18,372)         960      (18,372)         960
                           --------------------------------------------------
                           --------------------------------------------------

    Earnings (loss) per
     unit
    Basic                       0.305        0.257       (0.134)       0.437
                           --------------------------------------------------
                           --------------------------------------------------

    Diluted                     0.303        0.256       (0.134)       0.435
                           --------------------------------------------------
                           --------------------------------------------------

    Weighted average
     units
    Basic                  20,257,000   20,257,000   20,257,000   20,257,000
                           --------------------------------------------------
                           --------------------------------------------------

    Diluted                20,363,365   20,389,447   20,321,817   20,361,807
                           --------------------------------------------------
                           --------------------------------------------------



    AutoCanada Income Fund
    Interim Consolidated Statement of Cash Flows
    -------------------------------------------------------------------------

    (expressed in Canadian dollar thousands)

                                Three        Three         Nine  Period from
                               Months       Months       Months       May 11,
                                Ended        Ended        Ended      2006 to
                            September    September    September    September
                             30, 2007     30, 2006     30, 2007     30, 2006
                           (unaudited)  (unaudited)  (unaudited)  (unaudited)
                                    $            $            $            $

    Cash provided by
     (used in)

    Operating activities
    Net earnings (loss)
     for the period             6,168        5,220       (2,711)       8,851
    Items not affecting cash
      Future income
       taxes (note 12)            443            -       19,550            -
      Unit-based
       compensation
       (note 9(d))                120          188          440          292
      Amortization                794        1,146        2,354        1,764
      Gain on disposal
       of property &
       equipment                  (13)         (29)          (3)         (34)
                           --------------------------------------------------

                                7,512        6,525       19,630       10,873
    Net change in non-
     cash operating
     working capital
     balances                  (1,026)      (2,291)      (2,247)      10,315
                           --------------------------------------------------

                                6,486        4,234       17,383       21,188
                           --------------------------------------------------

    Investing activities
    Business acquisitions
     (note 3)                       -            -            -      (88,647)
    Investment in variable
     interest entity (note 4)       -            -       (4,727)           -
    Purchase of property &
     equipment                   (525)        (417)      (2,629)        (540)
    Proceeds on sale of
     property & equipment          30           77          123           89
    Restricted cash              (831)         842         (628)         498
                           --------------------------------------------------

                               (1,326)         502       (7,861)     (88,600)
                           --------------------------------------------------

    Financing activities
    Net proceeds from
     issuance of units
     (note 3)                       -            -            -       93,572
    Proceeds from
     long-term debt             1,096          358        7,251          358
    Repayment of long-term
     debt                      (2,075)         (27)      (2,225)         (27)
    Repayment of obligation
     under capital lease          (18)         (12)         (66)         (22)
    Distributions paid to
     Unitholders               (5,061)      (5,061)     (15,183)      (6,204)
                           --------------------------------------------------

                               (6,058)      (4,742)     (10,223)      87,677
                           --------------------------------------------------

    Increase (decrease) in
     cash                        (898)          (6)        (701)      20,265
    Cash and cash
     equivalents,
     beginning of period       21,077       20,271       20,880            -
                           --------------------------------------------------
    Cash and cash
     equivalents, end of
     period                    20,179       20,265       20,179       20,265
                           --------------------------------------------------
                           --------------------------------------------------

    Supplementary
     information
      Cash interest paid        2,908        2,273        8,135        3,414
      Transfer of inventory
       to property &
       equipment                  238          755        1,156        1,065
      Transfer of property
       & equipment to
       inventory                  445          434        1,593          667
    





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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