AUTOCANADA ANNOUNCES FIRST QUARTER RESULTS

• Revenue from continuing operations was $1,240.1 million as compared to $1,212.0 million in the prior year, an increase of $28.1 million
• Net loss for the period from total operations was $(3.2) million as compared to a net loss of $(2.3) million in the prior year
  • Net income from continuing operations was $9.7 million as compared to $8.0 million in the prior year
  • Net loss from discontinued operations was $(12.9) million as compared to $(10.3) million in the prior year
• Diluted net income per share from continuing operations was $0.37 as compared to $0.34 in the prior year
• Adjusted EBITDA from total operations¹ was $38.5 million as compared to $22.0 million in the prior year
  • Adjusted EBITDA from continuing operations¹ was $43.0 million as compared to $26.8 million in the prior year
  • Adjusted EBITDA from discontinued operations¹ was $(4.5) million as compared to $(4.9) million in the prior year

EDMONTON, AB, May 14, 2025 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ), a multi-location North American automobile dealership group, today reported its financial results for the three-month period ended March 31, 2025.

Paul Antony, Executive Chairman, stated, "We entered 2025 with a clear mandate: simplify the business, reduce operating costs, and strengthen our financial foundation. March and April brought solid new light vehicle demand in Canada, offering an encouraging start to the year. However, it remains to be seen whether this momentum will persist given the growing uncertainty surrounding U.S. tariffs, inflationary pressures, and broader risks to the Canadian economy. In response to this uncertain outlook, we accelerated our cost transformation efforts under the ACX Operating Method, delivering an additional $48.1 million in annualized savings in the first quarter and bringing total annualized run-rate savings to $57.1 million since the plan's launch in September 2024.

While recent performance has been encouraging, we are not counting on a linear recovery. We remain cautious in our near-term outlook and highly focused on what we can control, which is preserving cash, reducing leverage, and executing our transformation to realize $100 million in annual run rate cost savings by the end of 2025. I want to thank our team for their relentless focus and hard work as we deliver on our ambitious transformation priorities, and our OEM partners for their continued support and collaboration during this critical period."

First Quarter Key Highlights and Recent Developments

	Three-Months Ended March 31
Continuing Operations Financial Results	2025	2024  Revised ^3	% Change
Revenue	1,240,100	1,212,038	2.3 %
Same store revenue	1,203,228	1,162,261	3.5 %
Gross profit	198,036	197,577	0.2 %
Gross profit percentage ^2	16.0 %	16.3 %	(0.3) ppts
Operating expenses ("Opex")	174,876	174,962	0.0 %
Net income	9,707	7,969	21.8 %
Basic net income per share attributable to AutoCanada shareholders	0.39	0.34	14.7 %
Diluted net income per share attributable to AutoCanada shareholders	0.37	0.34	8.8 %
Adjusted EBITDA ^1	42,997	26,819	60.3 %
Adjusted EBITDA margin ^1	3.5 %	2.2 %	1.3 ppts
New retail vehicles sold (units) ^2	7,665	7,909	(3.1) %
Used retail vehicles sold (units) ^2	10,046	10,911	(7.9) %
New vehicle gross profit per retail unit ^2	4,656	5,026	(7.4) %
Used vehicle gross profit per retail unit ^2	1,421	1,578	(10.0) %
Parts and service ("P&S") gross profit	66,144	69,742	(5.2) %
Collision repair ("Collision") gross profit	18,198	14,304	27.2 %
Finance, insurance and other ("F&I") gross profit per retail unit average ^2	3,266	3,287	(0.6) %
Operating expenses before depreciation ^2	161,195	161,378	(0.1) %
Operating expenses before depreciation as a % of gross profit ^2	81.4 %	81.7 %	(0.3) ppts
Normalized opex before depreciation ^1	143,173	156,023	(8.2) %
Normalized opex before depreciation as a % of gross profit ^1	72.3 %	79.0 %	(6.7) ppts
Floorplan financing expense	10,263	17,045	(39.8) %

^3	Comparative period revised to reflect current period presentation for reclassification of discontinued operations.

Revenue increased by 2.3% in the first quarter of 2025 compared to the first quarter of 2024. Increases in revenue from new vehicle sales and collision are partially offset by decreases in used vehicle sales, parts and service, and F&I.

Gross profit increased by 0.2% in the first quarter of 2025 compared to the first quarter of 2024. Increases in both used vehicle gross profit which is driven by improvements in used wholesale vehicles² and collision. These increases are partially offset by decreases in new vehicle sales, parts and service, and F&I. A contributing factor to the decrease in gross profit for new, parts and service, and F&I is the decrease in total retail² units sold.

Operating expenses before depreciation² were flat in the first quarter of 2025 compared to the first quarter of 2024. Normalized operating expenses before depreciation¹ decreased by $(12.9) million, and included the normalizing of $15.8 million of restructuring charges from Q1 2025 related to the ongoing initiative targeting $100 million in annual run-rate cost savings.

Floorplan financing expenses decreased as a result of lower new and used inventory levels, which has been a focus in conjunction with the execution of the ACX Operating Method, and interest rate declines.

Net income for the period increased as a result of items noted above as well as increases in gains on redemption liabilities and decreases in impairment charges compared to the first quarter of 2024, this was partially offset by decreases in gains on asset dispositions in the first quarter of 2025.

Adjusted EBITDA¹ and adjusted EBITDA margin¹ for the period increased primarily as a result of lower operating expenses before depreciation and floorplan financing expenses as discussed above.

Collision Operations Highlights

	Three-Months Ended March 31
Collision Financial Results	2025	2024	% Change
Revenue	40,326	32,601	23.7 %
Gross profit	18,198	14,304	27.2 %
Gross profit percentage ^2	45.1 %	43.9 %	1.2 ppts
Adjusted EBITDA ^1	6,056	2,685	125.5 %
Same store revenue ^2	39,045	32,125	21.5 %
Same store gross profit ^2	17,534	14,149	23.9 %
Same store gross profit percentage ^2	44.9 %	44.0 %	0.9 ppts

Revenue and gross profit increased as a result of strong customer demand, additional Original Equipment Manufacturer ("OEM") certifications, increased insurance referrals and increased hail repairs.

Gross profit percentage² increased due to focused efforts on growing higher margin services including diagnostics, calibration and coatings.

Same store revenue, gross profit and gross profit percentage² increased for the reasons noted above.

Adjusted EBITDA¹ increased as a result of revenue growth, gross profit, and gross profit percentage² improvements described above.

Other Recent Developments

During the quarter:

• On February 14, 2025, the Company terminated its Volvo franchise at Bloomington/Normal Auto Mall, located in Illinois, for cash consideration of $0.9 million. The Volvo franchise was presented as assets held for sale in the U.S. Operations segment, which was presented as a discontinued operation, as at December 31, 2024. This decision is part of our active program to discontinue U.S. Operations.
• On March 4, 2025, the Company closed all remaining locations within RightRide. This decision is part of a larger strategic shift to refocus on core dealership and collision operations and reduce leverage.
• On March 7, 2025, the Company terminated an agreement with a Subsidiary within the Canadian Operations segment, which impacted the contractual rights that provided control over the subsidiary, such that it is no longer controlled by the Company upon termination of the agreement. The termination agreement requires the counterparty to pay the Company $14.5 million for repayment of loans in addition to $15.6 million for accrued interest, accrued royalty fees, and a termination fee. This decision is part of a larger strategic shift to optimize operations and reduce leverage.
• On March 28, 2025, the Company obtained consent to increase the Company's maximum permitted Total Net Funded Debt to Bank EBITDA Ratio from 5.50:1.00 to 6.00:1.00 for the period from April 1, 2025 to June 30, 2025.

After the quarter:

• On April 30, 2025, the Company completed the divestiture of North Toronto Auction, a used vehicle auction business operating in Innisfil, Ontario for $3.5 million in proceeds.

Conference Call

A conference call to discuss the results for the three months ended March 31, 2025 will be held on May 14, 2025 at 4:00 pm Mountain (6:00 pm Eastern). To participate in the conference call, please dial 1-888-510-2154 approximately 10 minutes prior to the call.

This conference call will also be webcast live over the internet and can be accessed by all interested parties at the following URL: https://investors.autocan.ca/2025-q1-conference-call/

MD&A and Financial Statements

Information included in this press release is a summary of results. It should be read in conjunction with AutoCanada's Interim Consolidated Financial Statements ("Interim Financial Statements") and Management's Discussion and Analysis ("MD&A") for the three-month period ended March 31, 2025, which can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca.

All comparisons presented in this press release are between the three-month period ended March 31, 2025 and the three-month period ended March 31, 2024, unless otherwise indicated. Results are reported in Canadian dollars and have been rounded to the nearest thousand dollars, unless otherwise stated.

^1	See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.
^2	This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". Section 13. NON-GAAP AND OTHER FINANCIAL MEASURES of the Company's Management's Discussion & Analysis for the three-month period ended March 31, 2025 ("MD&A") is hereby incorporated by reference for further information regarding the composition of these measures (accessible through the SEDAR website at www.sedarplus.ca).

Condensed Interim Consolidated Statements of Comprehensive Loss

(Unaudited)
(in thousands of Canadian dollars except for share and per share amounts)

	Three-month period ended March 31, 2025 $	Three-month period ended March 31, 2024 Revised ^1 $
Continuing operations
Revenue (Note 6)	1,240,100	1,212,038
Cost of sales (Note 7)	(1,042,064)	(1,014,461)
Gross profit	198,036	197,577
Operating expenses (Note 8)	(174,876)	(174,962)
Operating profit before other income and expense	23,160	22,615
Lease and other income, net	2,149	2,389
Gain on disposal of assets, net (Note 26)	13,053	19,267
Net impairment losses on trade and other receivables	(1,122)	(891)
Impairment of non-financial assets (Note 13, 16)	—	(7,200)
Operating profit	37,240	36,180
Finance costs (Note 9)	(29,549)	(29,874)
Finance income (Note 9)	436	728
Gain on redemption liabilities	2,324	—
Other gains, net	1,074	83
Income for the period before taxation from continuing operations	11,525	7,117
Income tax expense (recovery) (Note 10)	1,818	(852)
Net income for the period from continuing operations	9,707	7,969
Net loss for the period from discontinued operations (Note 14)	(12,859)	(10,330)
Net loss for the period	(3,152)	(2,361)
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign operations currency translation	306	2,448
Change in fair value of hedging instruments (Note 20)	—	(206)
Income tax relating to these items	—	51
Other comprehensive income for the period	306	2,293
Comprehensive loss for the period	(2,846)	(68)
Net loss for the period attributable to:
AutoCanada shareholders	(3,824)	(2,407)
Non-controlling interests	672	46
	(3,152)	(2,361)
Net loss for the period attributable to AutoCanada shareholders arises from:
Continuing operations	9,035	7,923
Discontinued operations	(12,859)	(10,330)
	(3,824)	(2,407)
Comprehensive loss for the period attributable to:
AutoCanada shareholders	(3,518)	(114)
Non-controlling interests	672	46
	(2,846)	(68)
Comprehensive loss for the period attributable to AutoCanada shareholders arises from:
Continuing operations	2,845	7,768
Discontinued operations	(6,363)	(7,882)
	(3,518)	(114)

	Three-month period ended March 31, 2025 $	Three-month period ended March 31, 2024 Revised ^1 $
Net loss per share attributable to AutoCanada shareholders:
Basic from continuing operations	0.39	0.34
Basic from discontinued operations	(0.56)	(0.44)
Basic	(0.17)	(0.10)
Diluted from continuing operations	0.37	0.34
Diluted from discontinued operations	(0.53)	(0.44)
Diluted	(0.16)	(0.10)
Weighted average shares
Basic (Note 22)	23,141,691	23,583,406
Diluted (Note 22)	24,172,766	23,583,406

^1	Comparative period revised to reflect current period presentation. See Note 14 - "Discontinued Operations" for additional information

The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca.

 Condensed Interim Consolidated Statements of Financial Position

(Unaudited)
(in thousands of Canadian dollars)

	March 31, 2025 (Unaudited) $	December 31, 2024 $
ASSETS
Current assets
Cash	101,468	67,343
Trade and other receivables (Note 11)	191,372	173,568
Inventories (Note 12)	866,547	947,278
Current tax recoverable	12,282	10,205
Other current assets (Note 17)	16,268	11,993
Derivative financial instrument (Note 20)	75	376
	1,188,012	1,210,763
Assets held for sale (Note 13)	345,343	332,693
Total current assets	1,533,355	1,543,456
Property and equipment (Note 15)	300,376	312,014
Right-of-use assets	357,281	389,958
Other long-term assets (Note 17)	13,555	16,501
Deferred income tax	18,937	18,840
Intangible assets	622,574	630,467
Goodwill	90,013	94,592
Total assets	2,936,091	3,005,828
LIABILITIES
Current liabilities
Trade and other payables (Note 18)	198,140	177,473
Revolving floorplan facilities (Note 19)	977,813	1,010,579
Current tax payable	—	3,766
Vehicle repurchase obligations	3,788	3,705
Indebtedness (Note 19)	23,872	24,108
Lease liabilities	24,970	35,780
Redemption liabilities	20,741	23,066
Other liabilities (Note 20)	11,063	11,063
Derivative financial instruments (Note 20)	394	1,741
	1,260,781	1,291,281
Liabilities directly associated with assets held for sale (Note 13)	184,803	201,966
Total current liabilities	1,445,584	1,493,247
Long-term indebtedness (Note 19)	517,442	517,543
Long-term lease liabilities	401,390	421,392
Long-term redemption liabilities	25,000	25,000
Derivative financial instruments (Note 20)	12,181	8,705
Deferred income tax	46,627	44,613
Total liabilities	2,448,224	2,510,500
EQUITY
Attributable to AutoCanada shareholders	465,829	468,027
Attributable to non-controlling interests	22,038	27,301
Total equity	487,867	495,328
	2,936,091	3,005,828

The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca.

Condensed Interim Consolidated Statements of Cash Flows

(Unaudited)
(in thousands of Canadian dollars)

	Three-month period ended
	March 31, 2025 $	March 31, 2024 $
Cash provided by (used in): Operating activities
Net income for the period from continuing operations	(3,152)	(2,361)
Adjustments for:
Income tax expense (Note 10)	1,818	(852)
Finance costs (Note 9) ^1	34,926	36,302
Depreciation of right-of-use assets (Note 8)	8,238	8,586
Depreciation of property and equipment (Note 8)	5,320	6,276
Amortization of intangible assets	123	(19,267)
Gain on disposal of assets, net (Note 13)	(13,053)	2,205
Share-based compensation (Note 21)	1,643	—
Unrealized fair value changes on foreign exchange forward contracts (Note 20)	(1,347)	2,373
Gain on redemption liabilities	(2,324)	—
Impairment of non-financial assets (Note 13, 14)	3,369	7,200
Net change in non-cash working capital (Note 25)	26,171	20,220
	61,732	60,808
Income taxes paid	(7,229)	(12,567)
Interest paid ^1	(35,800)	(41,686)
Settlement of share-based awards, net	—	(41)
	18,703	6,514
Investing activities
Purchases of property and equipment	(3,002)	(11,278)
Additions to intangible assets	(70)	(341)
Adjustments to prior year business acquisitions	—	(14)
Proceeds on sale of property and equipment	26	41,405
Proceeds on termination of loan agreement with subsidiary (Note 26)	30,107	—
Proceeds on franchise termination (Note 26)	894	—
	27,955	29,772
Financing activities
Proceeds from indebtedness	174,812	205,822
Repayment of indebtedness	(175,539)	(203,214)
Repurchase of common shares under Normal Course Issuer Bid	—	(1,944)
Shares settled from treasury, net (Note 22)	—	(531)
Payments for purchase of Used Digital Division minority interest	—	(22,500)
Dividends paid to non-controlling interests	(4,958)	(4,294)
Repayment of loans by non-controlling interests	—	2,236
Acquisition of non-controlling interests	(1,010)	—
Principal portion of lease payments, net	(8,440)	(7,794)
	(15,135)	(32,219)
Effect of exchange rate changes on cash	424	699
Net increase in cash	31,947	4,766
Cash at beginning of period per balance sheet	67,343	103,146
Cash at beginning of period included in assets held for sale related to discontinued operations (Note 14)	40,005	—
Cash at end of period	139,295	107,912
Included in cash per balance sheet	101,468	107,912
Included in the assets of the discontinued operations (Note 14)	37,827	—

The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca.

NON-GAAP AND OTHER FINANCIAL MEASURES

This press release contains certain financial measures that do not have any standardized meaning prescribed by GAAP. Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned these measures should not be construed as an alternative to net income (loss) or to cash provided by (used in) operating, investing, financing activities, cash, and indebtedness determined in accordance with GAAP, as indicators of our performance. We provide these additional non-GAAP measures ("Non-GAAP Measures"), capital management measures, and supplementary financial measures to assist investors in determining the Company's ability to generate earnings and cash provided by (used in) operating activities and to provide additional information on how these cash resources are used.

Adjusted EBITDA, adjusted EBITDA margin, normalized operating expenses before depreciation, and normalized operating expenses before depreciation as a percentage of gross profit are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Investors are cautioned that these Non-GAAP Measures should not replace net earnings or loss (as determined in accordance with GAAP) as an indicator of the Company's performance, cash flows from operating, investing and financing activities or as a measure of liquidity and cash flows. The Company's methods of calculating referenced Non-GAAP Measures may differ from the methods used by other issuers. Therefore, these measures may not be comparable to similar measures presented by other issuers.

We list and define these "NON-GAAP MEASURES" below:

Adjusted EBITDA

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is an indicator of a company's operating performance over a period of time and ability to incur and service debt. Adjusted EBITDA provides an indication of the results generated by our principal business activities prior to:

• Interest expense (other than interest expense on floorplan financing), income taxes, depreciation, and amortization;
• Charges that introduce volatility unrelated to operating performance by virtue of the impact of external factors (such as share-based compensation amounts attributed to certain equity issuances as part of the Used Digital Division);
• Non-cash charges (such as impairment, recoveries, gains or losses on derivatives, revaluation of contingent consideration and revaluation of redemption liabilities);
• Charges outside the normal course of business (such as restructuring, gains and losses on dealership divestitures, and real estate transactions); and
• Charges that are non-recurring in nature (such as resolution of lawsuits and legal claims).

The Company considers this measure meaningful as it provides improved continuity with respect to the comparison of our operating performance over a period of time.

Adjusted EBITDA Margin

Adjusted EBITDA margin is an indicator of a company's operating performance specifically in relation to our revenue performance.

The Company considers this measure meaningful as it provides improved continuity with respect to the comparison of our operating performance with retaining and growing profitability as our revenue and scale changes over a period of time.

Normalized Operating Expenses ("Opex") Before Depreciation

Normalized operating expenses before depreciation is an indicator of a company's operating expense before depreciation over a period of time, normalized for the following items:

• Transaction costs related to acquisitions, dispositions, and open points;
• Software implementation costs associated with the configuration or customization of software as a service arrangement;
• Restructuring charges relate to non-recurring organizational changes to improve the Company's profitability and overall efficiency;
• Management transition costs; and
• Share-based compensation expense.

The Company considers this measure meaningful as it provides a comparison of our operating expense normalized for transactions that are not indicative of the Company's operating expenses over time.

Normalized Operating Expenses Before Depreciation as a Percentage of Gross Profit

Normalized operating expenses before depreciation as a percentage of gross profit is a measure of a company's normalized operating expenses before depreciation over a period of time in relation to gross profit.

The Company considers this measure meaningful as it provides a comparison of our operating performance, normalized for transactions that are not indicative of the Company's operating expenses, with our growing profitability as our gross profit and scale changes over a period of time.

NON-GAAP AND OTHER FINANCIAL MEASURES RECONCILIATIONS

Adjusted EBITDA and Segmented Adjusted EBITDA

The following table illustrates segmented adjusted EBITDA for the three-month periods ended March 31:

	Three-Months Ended March 31, 2025				Three-Months Ended March 31, 2024 Revised ^1
	Canada	U.S.	Total		Canada	U.S.	Total
Period from January 1 to March 31
Net income (loss) for the period	3,517	(6,669)	(3,152)		6,681	(9,042)	(2,361)
Add back (deduct):
Income tax expense (recovery)	1,818	—	1,818		(852)	—	(852)
Depreciation of right of use assets	8,312	—	8,312		7,841	745	8,586
Depreciation of property and equipment	5,357	—	5,357		5,698	578	6,276
Amortization of intangible assets	123	—	123		126	—	126
Interest on long-term indebtedness	7,658	2,240	9,898		6,265	3,046	9,311
Lease liability interest	7,716	711	8,427		7,695	738	8,433
Impairment of non-financial assets	3,369	—	3,369		7,200	—	7,200
Gain on redemption liabilities	(2,324)	—	(2,324)		—	—	—
Canadian franchise dealership restructuring charges	15,766	—	15,766		2,000	—	2,000
Unrealized fair value changes in derivative instruments	2,432	—	2,432		2,001	—	2,001
Unrealized foreign exchange gains	(1,074)	—	(1,074)		(144)	—	(144)
Software implementation costs	450	—	450		657	—	657
Cybersecurity incident costs	128	—	128		—	—	—
RightRide restructuring charges	1,683	—	1,683		—	—	—
Acquisition related costs	163	—	163		—	—	—
Gain on disposal of assets	(11,935)	(894)	(12,829)		(19,267)	—	(19,267)
Adjusted EBITDA	43,159	(4,612)	38,547		25,901	(3,935)	21,966
Adjusted EBITDA from discontinued operations	(67)	4,517	4,450		918	3,935	4,853
Adjusted EBITDA from continuing operations	43,092	(95)	42,997		26,819	—	26,819

¹ Comparative period revised to reflect current period presentation for reclassification of discontinued operations.

The following table illustrates segmented collision adjusted EBITDA from continuing operations for the three-months ended March 31. There is no discontinued operation in Collision Operations.

	Three-Months Ended March 31, 2025				Three-Months Ended March 31, 2024
Collision Operations	Canada	U.S.	Total		Canada	U.S.	Total
Period from January 1 to March 31
Net income for the period	4,278	(95)	4,183		972	—	972
Add back:
Income tax expense	—	—	—		—	—	—
Depreciation of right of use assets	607	—	607		532	—	532
Depreciation of property and equipment	440	—	440		408	—	408
Lease liability interest	826	—	826		773	—	773
Adjusted EBITDA	6,151	(95)	6,056		2,685	—	2,685

Adjusted EBITDA Margin

The following table illustrates segmented adjusted EBITDA margin from continuing operations for the three-month periods ended March 31:

	Three-Months Ended March 31, 2025				Three-Months Ended March 31, 2024 Revised ^1
	Canada	U.S.	Total		Canada	U.S.	Total
Adjusted EBITDA	43,092	(95)	42,997		26,819	—	26,819
Revenue	1,240,100	—	1,240,100		1,212,038	—	1,212,038
Adjusted EBITDA Margin	3.5 %	— %	3.5 %		2.2 %	— %	2.2 %

¹ Comparative period revised to reflect current period presentation for reclassification of discontinued operations.

Normalized Operating Expenses Before Depreciation and Normalized Operating Expenses Before Depreciation as a Percentage of Gross Profit

The following table illustrates segmented normalized opex before depreciation and normalized opex before depreciation as a percentage of gross profit from continuing operations, for the three-month periods ended March 31:

	Three-Months Ended March 31, 2025				Three-Months Ended March 31, 2024 Revised ^1
	Canada	U.S.	Total		Canada	U.S.	Total
Operating expenses before depreciation	161,100	95	161,195		161,378	—	161,378
Normalizing Items:
Add back:
Acquisition-related costs	(163)	—	(163)		(493)	—	(493)
Software implementation costs	(450)	—	(450)		(657)	—	(657)
Canadian franchise dealership restructuring charges	(15,766)	—	(15,766)		(2,000)	—	(2,000)
Share-based compensation expense	(1,643)	—	(1,643)		(2,205)	—	(2,205)
Normalized Opex before depreciation	143,078	95	143,173		156,023	—	156,023
Gross profit	198,036	—	198,036		197,577	—	197,577
Normalized Opex Before Depreciation as a percentage of gross profit (%)	72.2 %	— %	72.3 %		79.0 %	— %	79.0 %

¹ Comparative period revised to reflect current period presentation for reclassification of discontinued operations.

Forward Looking Statements

Certain statements contained in this press release 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 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", "plan", "seek", "may", "intend", "likely", "will", "believe", "shall" and similar expressions) and the financial outlook with respect to the transformation plan are not all 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.

Forward-looking statements and financial outlook in this press release include: AutoCanada's future financial position and expected run-rate operational expense savings from the transformation plan.

Forward-looking statements and financial outlook provide information about management's expectations and plans for the future and may not be appropriate for other purposes. Forward looking statements and financial outlook are based on various assumptions, and expectations that AutoCanada believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove correct. Those assumptions and expectations are based on information currently available to AutoCanada, including information obtained from third-party consultants and other third-party sources, and the historic performance of AutoCanada's businesses. AutoCanada cautions that the assumptions used to prepare such forward-looking statements and financial outlook, including AutoCanada's expected run-rate operational expense savings through the transformation plan, could prove to be incorrect or inaccurate.

In preparing the forward-looking statements and financial outlook, AutoCanada considered numerous economic, market and operational assumptions, including key assumptions listed under Section 3 Market and Financial Outlook of the MD&A.

The forward-looking statements and financial outlook are also subject to the risks and uncertainties set forth below. By their very nature, forward-looking statements and financial outlook involve numerous assumptions, risks and uncertainties, both general and specific. Should one or more of these risks and uncertainties materialize or should underlying assumptions prove incorrect, as many important factors are beyond our control, AutoCanada's actual performance and financial results may vary materially from those estimates and expectations contemplated, expressed or implied in the forward-looking statements or financial outlook. These risks and uncertainties include risks relating to failure to realize expected cost-savings, cost overruns in one-time restructuring expenses, compliance with laws and regulations, reduced customer demand, operational risks, force majeure, labour relations matters, our ability to access external sources of debt and equity capital, and the risks identified in (i) the MD&A under Section 12 Risk Factors and (ii) AutoCanada's most recent Annual Information Form (the "AIF"). The preceding list of assumptions, risks and uncertainties is not exhaustive.

Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements and financial outlook. Therefore, any such forward-looking statements and financial outlook are qualified in their entirety by reference to the factors discussed throughout this press release and in the MD&A.

Details of the Company's material forward-looking statements and financial outlook are included in the Company's most recent AIF. The AIF and other documents filed with securities regulatory authorities (accessible through the SEDAR+ website (www.sedarplus.ca) describe the risks, material assumptions, and other factors that could influence actual results and which are incorporated herein by reference.

When relying on our forward-looking statements and financial outlook to make decisions with respect to AutoCanada, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements and financial outlook are provided as of the date of this press release and, except as required by law, AutoCanada does not undertake to update or revise such statements to reflect new information, subsequent or otherwise. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or financial outlook.

About AutoCanada

AutoCanada's Canadian Operations segment, as of March 31, 2025, operates 64 franchised dealerships in Canada, comprised of 25 brands, in 8 provinces. AutoCanada currently sells Acura, Alfa Romeo, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, FIAT, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, and Volkswagen branded vehicles. In addition, AutoCanada's Canadian Operations segment currently operates 3 Used Digital Division dealerships ("Used Vehicle Operations") and 12 stand-alone collision centres within our group of 29 collision centres ("Collision Centres"). In 2024, our Canadian dealerships sold approximately 85,000 new and used retail vehicles. In addition, our Collision Centres offer an opportunity for the Company to retain customers at every touchpoint within the automotive ecosystem.

AutoCanada's U.S. Operations segment, operating as Leader Automotive Group ("Leader"), operates 17 franchised dealerships comprised of 15 brands, in Illinois, USA. Leader currently sells Audi, Chevrolet, Chrysler, Dodge, Honda, Hyundai, Jeep, Kia, Lincoln, Mercedes-Benz, Porsche, Ram, Subaru, Toyota, and Volkswagen branded vehicles. In 2024, our U.S. dealerships sold approximately 12,900 new and used retail vehicles.

Additional Information

Additional information about AutoCanada is available at the Company's website at www.autocan.ca and on the SEDAR+ website at www.sedarplus.ca.

SOURCE AutoCanada Inc.

For further information contact: Samuel Cochrane, Chief Financial Officer, Phone: [phone], Email: [e-mail]