AUTOCANADA ANNOUNCES FIRST QUARTER RESULTS

Published: 2025-05-14 17:01:42 ET ACQ.TO

Published on 05/14/2025 at 17:01

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) %

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:

After the quarter:

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.

See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.

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-monthperiod endedMarch 31, 2025$

Three-monthperiod 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

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

—

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

(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

(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-monthperiod ended

March 31, 2025

Three-monthperiod 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

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)

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

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

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

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:

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:

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, 2024Revised 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 31,2024Revised 1

Canada

U.S.

Total

Canada

U.S.

Total

Operating expenses before depreciation

161,100

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

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.