AUTOCANADA ANNOUNCES FOURTH QUARTER RESULTS

• Revenue from continuing operations was $1,261.9 million as compared to $1,277.8 million in the prior year, a decrease of $(15.9) million
• Net loss for the period from total operations was $(38.4) million as compared to a net loss of $(22.6) million in the prior year
  • Net income (loss) from continuing operations was $7.1 million as compared to a net loss of $(16.0) million in the prior year
  • Net loss from discontinued operations was $(45.5) million as compared to a loss of $(6.6) million in the prior year
• Diluted net income (loss) per share from continuing operations was $0.33 as compared to $(0.54) in the prior year
• Adjusted EBITDA¹ on a total operations basis¹ was $47.1 million as compared to $46.4 million in the prior year
  • Adjusted EBITDA from continuing operations¹ was $54.1 million as compared to $47.9 million in the prior year
  • Adjusted EBITDA from discontinued operations¹ was a loss of $(7.0) million as compared to a loss of $(1.5) million in the prior year

EDMONTON, AB, March 19, 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 December 31, 2024.

Paul Antony, Executive Chairman, stated, "In Q4 2024, lower interest rates and OEM incentives drove strong new light vehicle demand in Canada, particularly in October and November, contributing to a 12.8% year-over-year increase in Adjusted EBITDA from our Canadian operations. A major milestone was the completion of our Strategic Review, which resulted in the sale of three non-core Stellantis dealerships for $59.5 million, the closure of all RightRide locations, eliminating an $11 million annual Adjusted EBITDA loss, and the decision to divest our U.S. business, which recorded a $24.2 million Adjusted EBITDA loss in 2024 and is now classified as a Discontinued Operation while we seek buyers. With this review behind us, we are now fully focused on executing our Operational Transformation Plan. 

Launched in Q3 2024, this plan targets $100 million in annual run-rate cost savings by the end of 2025, as compared to trailing-twelve-months Q2 2024 operating expenses excluding depreciation and amortization. It began with heightened restrictions on discretionary spending and hiring in September and expanded in Q4 with the introduction of the ACX Operating Method at four pilot dealerships. The plan is progressing as expected, with savings driven by four key areas: $63 million from standardizing dealership operations, $23 million from enhanced cost controls, $9 million from improved inventory management, and $5 million from centralizing administrative functions. As of December 31st, we have already realized $9 million in permanent annual run-rate savings."

Paul Antony concluded, "So far in 2025, the Canadian new light vehicle market has cooled, and while industry forecasts project flat sales this year, we are navigating a complex environment. The North American and Canadian automotive markets remain highly vulnerable to U.S. tariffs, posing serious risks to market stability and demand. Despite these challenges, our transformation plan remains on track, and we are committed to operational excellence, cost discipline, deleveraging, and long-term value creation. I want to thank our team for their dedication and our investors and OEM partners for their ongoing support."

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 and year ended December 31, 2024 ("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).

Fourth Quarter Key Highlights and Recent Developments

	Three-Months Ended December 31
Continuing Operations Financial Results	2024	2023	% Change
Revenue	1,261,921	1,277,752	(1.2) %
Same store revenue	1,208,119	1,216,227	(0.7) %
Gross profit	216,930	225,134	(3.6) %
Gross profit percentage ^2	17.2 %	17.6 %	(0.4) ppts
Operating expenses	180,894	217,474	(16.8) %
Net income (loss)	7,105	(16,020)	144.4 %
Basic net income (loss) per share attributable to AutoCanada shareholders	0.34	(0.56)	160.7 %
Diluted net income (loss) per share attributable to AutoCanada shareholders	0.33	(0.54)	161.1 %
Adjusted EBITDA	54,095	47,945	12.8 %
Adjusted EBITDA margin ^1	4.3 %	3.8 %	0.5 ppts
New retail vehicles sold (units) ^2	8,544	8,161	4.7 %
Used retail vehicles sold (units) ^2	10,813	11,805	(8.4) %
New vehicle gross profit per retail unit ^2	4,627	5,401	(14.3) %
Used vehicle gross profit per retail unit ^2	1,842	1,948	(5.4) %
Parts and service ("P&S") gross profit	76,843	76,063	1.0 %
Collision repair ("Collision") gross profit	17,242	17,312	(0.4) %
Finance, insurance and other ("F&I") gross profit per retail unit average ^2	3,295	3,234	1.9 %
Operating expenses before depreciation ^2	166,148	203,616	(18.4) %
Operating expenses before depreciation as a % of gross profit ^2	76.6 %	90.4 %	(13.9) ppts
Floorplan financing expense	13,110	17,023	(23.0) %

Consolidated revenue decreased due to weaker used vehicle performance. Consolidated gross profit decreased due to declining new vehicle gross profit per retail unit² as seen industry wide, as the new vehicle market normalizes, and declining used vehicle sales as a result of current used vehicle market dynamics resulting in the prioritization of lower priced vehicles and lower number of used retail vehicles² sold, partially offset by positive contributions from P&S, and recent acquisitions.

Operating expenses before depreciation² declined due to one-time $36.8 million share-based compensation expenses related to the consolidation of ownership of the Used Digital Division in the prior year, and lower variable employee costs as a result of weaker gross profit, greater restrictions on hiring and discretionary spend, and the ongoing initiative targeting $100 million in annual run-rate cost savings by the end of 2025, partially offset by $9.9 million of restructuring charges related to the noted ongoing cost savings initiative.

Floorplan financing expenses decreased as a result of lower new and used inventory levels, and interest rates.

Net income for the period improved as a result of reduced operating expenses before depreciation² and floorplan financing expenses as discussed above, and an increase in the add back of unrealized fair value changes in derivative instruments as a result of an increase in the CAD to USD foreign exchange rate, partially offset by a $7.6 million writedown of wholesale losses related to Capital Chrysler from 2018.

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

Collision Operations Highlights

	Three-Months Ended December 31
Collision Financial Results	2024	2023	% Change
Revenue	36,262	32,415	11.9 %
Gross profit	17,242	17,312	(0.4) %
Gross profit percentage ^2	47.5 %	53.4 %	(5.9) ppts
Adjusted EBITDA ^1	5,949	3,808	56.2 %
Same store revenue ^2	35,006	32,136	8.9 %
Same store gross profit ^2	16,525	17,237	(4.1) %
Same store gross profit percentage ^2	47.2 %	53.6 %	(6.4) ppts

Revenue increased as a result of strong customer demand, additional OEM certifications, increased insurance referrals and increased hail repairs. Gross profit and gross profit percentage² decreased due to higher labour costs and a rise in lower margin paintless dent repair work.

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

Adjusted EBITDA¹ increased largely due to lower operating expenses as a result of improvements in controlling cost of insurance referral and bad debt collections.

Other Recent Developments

During the quarter:

• On November 18, 2024, the Company sold substantially all of the operating assets of Okanagan Chrysler Chrysler, located in Kelowna, British Columbia, for cash consideration of $26.2 million plus closing adjustments resulting in a gain of $7.5 million. This disposition aligns with the Company's commitment to improve profitability and reduce leverage.
• On December 27, 2024, the Company amended its senior credit facility to include add-backs of up to CAD $35 million for specific one-time expenses, including $20 million USD provisioned for Federal Trade Commission settlement expenses, in the definition of EBITDA, for purposes of determining compliance with the Company's financial covenants under the senior credit facility for the rolling four quarter period from December 31, 2024 to September 30, 2025.

After 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 business and reduce leverage.
• On March 7, 2025, the Company terminated an agreement with a subsidiary within the Canadian Operations segment, which impacts the contractual rights over the subsidiary. 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.

Conference Call

A conference call to discuss the results for the three months ended December 31, 2024 will be held on March 19, 2025 at 4:00 pm Mountain (6:00 pm Eastern). To participate in the conference call, please dial 1-888-664-6392 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/2024-q4-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 Consolidated Financial Statements and Management's Discussion and Analysis for the year ended December 31, 2024, which can be found on the Company's website at www.autocan.ca or on SEDAR+ at www.sedarplus.ca.

All comparisons presented in this press release are between the three-month period ended December 31, 2024 and the three-month period ended December 31, 2023, unless otherwise indicated. Results are reported in Canadian dollars and have been rounded to the nearest thousand dollars, unless otherwise stated.

Consolidated Statements of Comprehensive (Loss) Income
For the Years Ended
(in thousands of Canadian dollars except for share and per share amounts)

	December 31, 2024 $	December 31, 2023  Revised^(1) $
Continuing operations
Revenue (Note 6)	5,351,672	5,607,194
Cost of sales (Note 7)	(4,469,395)	(4,629,532)
Gross profit	882,277	977,662
Operating expenses (Note 8)	(735,312)	(777,159)
Operating profit before other income	146,965	200,503
Lease and other income (Note 10)	7,850	12,775
Gain on disposal of assets, net (Note 10)	29,781	442
Net impairment losses on trade and other receivables	(8,737)	(2,230)
(Impairment) recoveries of non-financial assets (Note 20, 24)	(4,542)	3,538
Operating profit	171,317	215,028
Finance costs (Note 11)	(129,678)	(123,020)
Finance income (Note 11)	2,674	3,346
(Loss) gain on redemption liabilities (Note 14)	(486)	3,639
Other gains (losses), net	846	(321)
Income for the year before tax from continuing operations	44,673	98,672
Income tax expense (Note 12)	8,035	30,584
Net income for the year from continuing operations	36,638	67,973
Net loss for the year from discontinued operation (Note 18)	(103,386)	(14,192)
Net (loss) income for the year	(66,748)	53,781
Other comprehensive income (loss)
Items that may be reclassified to profit or loss
Foreign operations currency translation (Note 18)	8,032	6,489
Change in fair value of cash flow hedge (Note 25)	(206)	1,800
Income tax relating to these items	51	(458)
Other comprehensive income for the year, net of tax	7,877	7,831
Comprehensive (loss) income for the year	(58,871)	61,612
Net (loss) income for the year attributable to:
AutoCanada shareholders	(68,233)	50,490
Non-controlling interests	1,485	3,291
	(66,748)	53,781
Net (loss) income for the year attributable to AutoCanada shareholders arises from:
Continuing operations	35,153	64,682
Discontinued operation	(103,386)	(14,192)
	(68,233)	50,490
Comprehensive (loss) income for the year attributable to:
AutoCanada shareholders	(60,356)	58,321
Non-controlling interests	1,485	3,291
	(58,871)	61,612
Comprehensive (loss) income for the year attributable to AutoCanada shareholders arises from:
Continuing operations	34,998	66,024
Discontinued operation	(95,354)	(7,703)
	(60,356)	58,321

	December 31, 2024 $	December 31, 2023  Revised^(1) $
Net (loss) income per share attributable to AutoCanada shareholders:
Basic from continuing operations	1.51	2.75
Basic from discontinued operation	(4.44)	(0.61)
Basic	(2.93)	2.14
Diluted from continuing operations	1.46	2.65
Diluted from discontinued operation	(4.29)	(0.59)
Diluted	(2.83)	2.06
Weighted average shares
Basic (Note 30)	23,316,008	23,561,236
Diluted (Note 30)	24,137,069	24,450,681

1. Comparative period revised to reflect current period presentation.

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

Consolidated Statements of Financial Position
(in thousands of Canadian dollars)

	December 31, 2024 $	December 31, 2023 $
ASSETS
Current assets
Cash	67,343	103,146
Trade and other receivables (Note 15)	173,568	222,076
Inventories (Note 16)	947,278	1,154,311
Current tax recoverable	10,205	22,187
Other current assets (Note 21)	11,993	15,718
Derivative financial instruments (Note 25)^1	376	—
	1,210,763	1,517,438
Assets held for sale (Note 17, 18)	332,693	22,152
Total current assets	1,543,456	1,539,590
Property and equipment (Note 19)	312,014	378,269
Right-of-use assets (Note 24)	389,958	405,105
Other long-term assets (Note 21)	16,501	16,708
Deferred income tax  (Note 12)	18,840	35,444
Derivative financial instruments (Note 25)	—	3,920
Intangible assets (Note 20)	630,467	682,137
Goodwill (Note 20)	94,592	98,266
Total assets	3,005,828	3,159,439
LIABILITIES
Current liabilities
Trade and other payables (Note 22)	177,473	238,427
Revolving floorplan facilities (Note 23)	1,010,579	1,174,595
Current tax payable	3,766	—
Vehicle repurchase obligations (Note 26)	3,705	1,982
Indebtedness (Note 23)	24,108	744
Lease liabilities (Note 24)	35,780	28,411
Redemption liabilities (Note 14)	23,066	22,580
Other liabilities (Note 27)	11,063	12,325
Derivative financial instruments (Note 25)	1,741	—
	1,291,281	1,479,064
Liabilities directly associated with assets held for sale (Note 18)	201,966	—
Total current liabilities	1,493,247	1,479,064
Long-term indebtedness (Note 23)	517,543	562,178
Long-term lease liabilities (Note 24)	421,392	469,013
Long-term redemption liabilities (Note 14)	25,000	25,000
Derivative financial instruments (Note 25)	8,705	2,219
Other long-term liabilities (Note 27)	—	1,368
Deferred income tax  (Note 12)	44,613	55,768
	2,510,500	2,594,610
EQUITY
Attributable to AutoCanada shareholders	468,027	534,847
Attributable to non-controlling interests	27,301	29,982
	495,328	564,829
	3,005,828	3,159,439

¹  Comparative current derivative financial instrument asset of $2,318 has not been reclassified to conform with current year presentation as it was included in other current assets as at December 31, 2023.

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

Consolidated Statements of Cash Flows
For the Years Ended
(in thousands of Canadian dollars)

	December 31, 2024 $	December 31, 2023 $
Cash provided by (used in): Operating activities
Net income for the year from continuing operations	(66,748)	53,781
Adjustments for:
Income tax expense (Note 12)	21,733	30,584
Finance costs (Note 11, 18)	155,598	145,939
Depreciation of right-of-use assets (Note 24)	35,919	33,443
Depreciation of property and equipment (Note 19)	25,843	25,030
Amortization of intangible assets (Note 20)	503	529
Gain on disposal of assets, net (Note 10)	(29,781)	(422)
Share-based compensation (Note 29)	8,033	6,485
Share-based compensation - Used Digital Division (Note 14, 29)	—	36,725
Unrealized fair value changes on foreign exchange forward contracts (Note 25)	3,853	(2,267)
Revaluation of redemption liabilities (Note 14)	486	(3,639)
Net impairment (recoveries) of non-financial assets (Note 20, 24)	21,058	(3,538)
Net change in non-cash working capital (Note 36)	1,325	(3,552)
	177,822	319,098
Income taxes paid	(537)	(58,371)
Interest paid	(144,412)	(140,292)
Tax withholdings paid on settlement of share-based awards	(1,247)	(901)
	31,626	119,534
Investing activities
Business acquisitions, net of cash acquired (Note 13)	(20,197)	(47,027)
Purchases of property and equipment (Note 19)	(33,282)	(77,416)
Additions to intangible assets (Note 20)	(790)	(2,102)
Settlement of prior year business acquisitions	(491)	817
Proceeds on sale of property and equipment	63,123	299
Proceeds on divestiture of dealerships (Note 34)	59,497	—
	67,860	(125,429)
Financing activities
Proceeds from indebtedness  (Note 23)	635,046	674,560
Repayment of indebtedness  (Note 23)	(657,730)	(669,334)
Repayment of executive advance	—	1,624
Repurchase of common shares under Normal Course Issuer Bid (Note 30)	(9,942)	—
Payments for purchase of Used Digital Division minority interest (Note 35)	(22,500)	—
Shares settled from treasury (Note 30)	4	353
Proceeds from exercise of stock options, net	—	279
Acquisition of non-controlling interests	(5,486)	—
Proceeds from sale of equity interest in 15154871 Canada Inc.	—	25,000
Settlement of redemption liabilities	—	(1,444)
Repayment of loan by non-controlling interests	2,961	3,083
Dividends paid to non-controlling interests	(4,294)	(3,595)
Principal portion of lease payments	(31,984)	(28,828)
	(93,925)	1,698
Effect of exchange rate changes on cash	(1,359)	(958)
Net increase (decrease) in cash	4,202	(5,155)
Cash at beginning of year	103,146	108,301
Cash at end of year	107,348	103,146
Included in cash per balance sheet	67,343	103,146
Included in the assets of the discontinued operation (Note 18)	40,005	—

The accompanying notes are an integral part of these consolidated financial statements and can be found on the Company's website at www.autocan.ca or on SEDAR+ at 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 and adjusted EBITDA margin 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.

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 December 31:

	Three-Months Ended December 31, 2024				Three-Months Ended December 31, 2023
	Canada	U.S.	Total		Canada	U.S.	Total
Period from October 1 to December 31
Net income (loss) for the period	7,105	(45,471)	(38,366)		(16,020)	(6,610)	(22,630)
Add back (deduct):
Income tax expense (recovery)	1,173	94	1,267		4,546	(11)	4,535
Depreciation of right of use assets	8,536	1,008	9,544		7,943	743	8,686
Depreciation of property and equipment	6,084	685	6,769		5,787	672	6,459
Amortization of intangible assets	126	—	126		128	—	128
Interest on long-term indebtedness	7,509	3,141	10,650		7,020	2,838	9,858
Lease liability interest	8,127	960	9,087		7,630	840	8,470
Impairment of non-financial assets	(3,240)	5,192	1,952		(3,538)	—	(3,538)
Share-based compensation - Used Digital Division	—	—	—		36,725	—	36,725
Gain on redemption liabilities	1,113	—	1,113		(3,639)	—	(3,639)
Canadian franchise dealership restructuring charges	9,913	—	9,913		—	—	—
FTC settlement	—	27,396	27,396		—	—	—
Unrealized fair value changes in derivative instruments	5,491	—	5,491		(1,437)	—	(1,437)
Amortization of loss on terminated hedges	—	—	—		616	—	616
Unrealized foreign exchange losses (gains)	(175)	—	(175)		108	—	108
Used Digital Division transaction costs	—	—	—		1,774	—	1,774
Software implementation costs	531	—	531		677	—	677
Cybersecurity incident costs	567	—	567		—	—	—
RightRide restructuring charges	995	—	995		—	—	—
Write-down associated with wholesale transactions	7,592	—	7,592		—	—	—
Gain on disposal of assets	(7,352)	—	(7,352)		(375)	20	(355)
Adjusted EBITDA	54,095	(6,995)	47,100		47,945	(1,508)	46,437
Adjusted EBITDA from discontinued operation	—	6,995	6,995		—	1,508	1,508
Adjusted EBITDA from continuing operations	54,095	—	54,095		47,945	—	47,945

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

	Three-Months Ended December 31, 2024				Three-Months Ended December 31, 2023
Collision Operations	Canada	U.S.	Total		Canada	U.S.	Total
Period from October 1 to December 31
Net income for the period	4,374	—	4,374		362	—	362
Add back:
Income tax expense	(448)	—	(448)		1,811	—	1,811
Depreciation of right of use assets	679	—	679		489	—	489
Depreciation of property and equipment	493	—	493		407	—	407
Lease liability interest	851	—	851		734	—	734
Gain on disposal of assets	—	—	—		5	—	5
Adjusted EBITDA	5,949	—	5,949		3,808	—	3,808

Adjusted EBITDA Margin

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

	Three-Months Ended December 31, 2024				Three-Months Ended December 31, 2023
	Canada	U.S.	Total		Canada	U.S.	Total
Adjusted EBITDA	54,095	—	54,095		47,945	—	47,945
Revenue	1,261,921	—	1,261,921		1,277,752	—	1,277,752
Adjusted EBITDA Margin	4.3 %	— %	4.3 %		3.8 %	— %	3.8 %

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 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. 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 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 currently 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 4 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"), currently 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: [email protected]