AUTOCANADA ANNOUNCES SECOND QUARTER RESULTS

Aug 13 2025 22:00 BST

Revenue from continuing operations was $1,338.2 million as compared to $1,381.2 million in the prior year, a decrease of $(43.0) million
Net income for the period from total operations was $18.9 million as compared to a net loss of $(33.1) million in the prior year
- Net income from continuing operations was $18.9 million as compared to $3.9 million in the prior year
- Net loss from discontinued operations was $0.0 million as compared to $(37.0) million in the prior year
Diluted net income per share from continuing operations was $0.72 as compared to $0.12 in the prior year
Adjusted EBITDA from total operations¹ was $68.5 million as compared to $27.0 million in the prior year
- Adjusted EBITDA from continuing operations¹was $64.4 million as compared to $33.5 million in the prior year
- Adjusted EBITDA from discontinued operations¹was $4.1 million as compared to $(6.5) million in the prior year¹
Total Net Funded Debt to Bank EBITDA Ratio² reduced from 4.92x as at March 31, 2025 to 3.42x as at June 30, 2025

EDMONTON, AB , Aug. 13, 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 June 30, 2025.

Paul Antony, Executive Chairman, stated, "AutoCanada's second quarter results reflect the momentum we're building as our transformation takes hold. With $80.0 million in annualized savings already realized, we've raised our target to $115.0 million, exceeding the original $100.0 million ambition we committed to at the beginning of this year. At the same time, we've made decisive progress on the U.S. divestiture, with one dealership sold and a clear path to exit the remaining dealerships. Expected total net proceeds of $115.0 to $130.0 million from the sale of our U.S. dealerships will meaningfully deleverage the balance sheet and sharpen our focus on the core Canadian business.

"Our team is squarely focused on completing the transformation, and we remain on track to deliver $48.5 million in net in-year savings by year-end, even after accounting for $29.3 million in restructuring costs," said Paul Antony, Executive Chairman. "While Canadian new vehicle demand has been strong so far this year, the potential impact of tariffs on the industry remains unclear. We may also see some near-term softness in same store sales as our store-level teams focus on execution and operational efficiency. As the transformation concludes, we expect sales momentum to normalize, underpinned by the comprehensive restructuring that has established a more efficient and sustainable cost structure, positioning the business to refocus on rebuilding volume from a stronger, more profitable foundation."

As we enter the final phase of our transformation, AutoCanada has come full circle, returning to its roots as a focused consolidator of Canadian dealerships and collision centres. With the major pieces in place, the time is right for a leadership transition. As we close out the year, our priorities are clear: complete the U.S. exit, deliver the remaining savings, deleverage the balance sheet, and position the company for its next chapter of profitable growth.

I want to sincerely thank our employees across the country who have worked relentlessly to drive this transformation, and our OEM partners for their continued support. It's been a privilege to lead this company through such a critical chapter in its history."

______________________________

¹ See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.

² This press release contains "SUPPLEMENTARY FINANCIAL MEASURES" and "FINANCIAL COVENANTS". Section 13. NON-GAAP AND OTHER FINANCIAL MEASURES and Section 6. LIQUIDITY AND CAPITAL RESOURCES of the Company's Management's Discussion & Analysis for the three-month period and six-month period ended June 30, 2025 ("MD&A") is hereby incorporated by reference for further information regarding the composition of these measures and financial covenants (accessible through the SEDAR website at www.sedarplus.ca).

Second Quarter Key Highlights and Recent Developments

	Three-Months Ended June 30
Continuing Operations Financial Results	2025	2024 Revised ³	% Change
Revenue	1,338,199	1,381,150	(3.1) %
Same store revenue	1,317,396	1,327,438	(0.8) %
Gross profit	225,367	220,758	2.1 %
Gross profit percentage ²	16.8 %	16.0 %	0.8 ppts
Operating expenses ("Opex")	170,737	186,497	(8.5) %
Net income	18,911	3,935	380.6 %
Basic net income per share attributable to AutoCanada shareholders	0.75	0.12	525.0 %
Diluted net income per share attributable to AutoCanada shareholders	0.72	0.12	500.0 %
Adjusted EBITDA ¹	64,380	33,469	92.4 %
Adjusted EBITDA margin ¹	4.8 %	2.4 %	2.4 ppts
New retail vehicles sold (units) ²	8,790	9,311	(5.6) %
Used retail vehicles sold (units) ²	10,452	13,367	(21.8) %
New vehicle gross profit per retail unit ²	4,544	4,823	(5.8) %
Used vehicle gross profit per retail unit ²	1,774	760	133.4 %
Parts and service ("P&S") gross profit	78,902	78,231	0.9 %
Collision repair ("Collision") gross profit	16,561	16,122	2.7 %
Finance, insurance and other ("F&I") gross profit per retail unit average ²	3,337	3,153	5.8 %
Operating expenses before depreciation ²	157,094	172,680	(0.1) %
Operating expenses before depreciation as a % of gross profit ²	69.7 %	78.2 %	(8.5) ppts
Normalized opex before depreciation ¹	147,478	164,040	(10.1) %
Normalized opex before depreciation as a % of gross profit ¹	65.4 %	74.3 %	(9.0) ppts
Floorplan financing expense	9,018	17,376	(48.1) %

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

Revenue decreased by (3.1)% in the second quarter of 2025 compared to the second quarter of 2024, primarily due to decreases in used vehicle sales and F&I. This decline is partially offset by increases in revenue from new vehicle sales, parts and service and collision repair services.

Gross profit increased by 2.1% to $225.4 million in the second quarter of 2025 compared to the second quarter of 2024, driven by increases in used vehicle and collision repair services gross profit. These increases were partially offset by decreases in new vehicle, parts and service, and F&I. A key factor contributing to the increase in gross profit is the improvement in used vehicle gross profit per retail unit², which offset the impact of lower overall total retail² unit volumes from both new and used during the quarter. Used vehicle gross profit improvements are driven by better management of used vehicle inventory, which is a key focus of the ACX Operating method and lapping a used vehicle provision taken in the second quarter of 2024.

Operating expenses before depreciation² decreased by (9.0)% to $157.1 million in the second quarter of 2025 compared to the second quarter of 2024. Normalized operating expenses before depreciation¹ decreased by (10.1)% to $147.5 million, and included the normalization of $6.0 million of restructuring charges related to the ongoing initiatives targeting $115.0 million in annual run-rate cost savings by the end of 2025. This guidance has been raised from $100.0 million in annual run-rate cost savings in-light of faster-than-expected progress achieved to date.

Floorplan financing expenses decreased (48.1)% to $9.0 million due to reduced new and used vehicle inventory levels and lower interest rates. Inventory management has been a focus in conjunction with the implementation of the ACX Operating Method.

Net income for the period increased by 380.6% to $18.9 million in the second quarter of 2025 compared to the second quarter of 2024, as a result of items noted above, which is partially offset by higher income taxes.

Adjusted EBITDA¹ increased by 92.4% to $64.4 million in the second quarter of 2025 compared to the second quarter of 2024, while adjusted EBITDA margin¹ improved 2.4 ppts to 4.8%. These improvements were driven by lower operating expenses before depreciation², lower floorplan financing expenses and improved gross profit as noted above.

¹ See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.

Collision Operations Highlights

	Three-Months Ended June 30
Collision Financial Results	2025	2024	% Change
Revenue	38,420	30,563	25.7 %
Gross profit	16,561	16,122	2.7 %
Gross profit percentage ²	43.1 %	52.8 %	(9.7) ppts
Adjusted EBITDA ¹	3,737	3,065	21.9 %
Same store revenue ²	36,869	30,510	20.8 %
Same store gross profit ²	16,111	15,959	1.0 %
Same store gross profit percentage ²	43.7 %	52.3 %	(8.6) 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 decreased due to an increase in paintless dent repair which has a lower margin profile than traditional collision repair.

Trends in the same store revenue, gross profit and gross profit percentage² are consistent with overall business performance, with the reasons noted above.

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

Other Recent Developments

During 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 $3.3 million in proceeds.
On May 28, 2025, the Company terminated its Alfa Romeo and FIAT franchise at Maple Ridge Chrysler Dodge Jeep Ram & Fraser Valley Alfa Romeo, located in Maple Ridge, British Columbia.

After the quarter:

On July 11, 2025, the Company announced that Paul Antony will transition from his role as Executive Chair. The Board of Directors has begun a search for a Chief Executive Officer.
On July 16, 2025, the Company announced that it has entered into definitive agreements to sell 13 franchised dealerships in its U.S. Operations segment for expected aggregate proceeds of approximately $82.7 million which includes approximately $6.4 million for real estate. The transactions are subject to customary closing conditions, including OEM approvals, and are anticipated to close in the second half of 2025.
On July 21, 2025, the Company announced that it has selected CarGurus as its preferred partner in Canada supporting digital marketing efforts.
On July 29, 2025, the Company sold substantially all of the operating assets of Crystal Lake Chrysler Dodge Jeep Ram, located in Crystal Lake, Illinois, for cash consideration of $9.9 million plus closing adjustments. Crystal Lake Chrysler Dodge Jeep Ram was presented as held for sale in the U.S. Operations segment as at June 30, 2025.

Conference Call

A conference call to discuss the results for the three months ended June 30, 2025 will be held on August 13, 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-q2-conference-call/.

¹ See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.

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 and six-month period ended June 30, 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 June 30, 2025 and the three-month period ended June 30, 2024, unless otherwise indicated. Results are reported in Canadian dollars and have been rounded to the nearest thousand dollars, unless otherwise stated.

Condensed Interim Consolidated Statements of Comprehensive Income (Loss)

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

	Three-month period ended		Six-month period ended
	June 30, 2025 $	June 30, 2024 $	June 30, 2025 $	June 30, 2024 Revised ¹ $
Continuing operations
Revenue (Note 6)	1,338,199	1,381,150	2,578,299	2,593,187
Cost of sales (Note 7)	(1,112,832)	(1,160,392)	(2,154,896)	(2,174,852)
Gross profit	225,367	220,758	423,403	418,335
Operating expenses (Note 8)	(170,737)	(186,497)	(345,613)	(361,459)
Operating profit before other income and expense	54,630	34,261	77,790	56,876
Lease and other income, net	1,744	1,196	3,893	3,585
Gain on disposal of assets, net (Note 27)	862	3,359	13,915	22,626
Net impairment losses on trade and other receivables	(1,306)	(709)	(1,306)	(1,600)
Impairment of non-financial assets (Note 14, 17)	(2,380)	—	(2,380)	(7,200)
Operating profit	54,672	38,107	91,912	74,287
Finance costs (Note 9)	(24,239)	(30,487)	(53,788)	(60,276)
Finance income (Note 9)	296	58	732	786
(Loss) Gain on redemption liabilities	(1,183)	(642)	1,141	(642)
Other (losses) gains, net	(2,338)	266	(1,264)	348
Income for the period before taxation from continuing operations	27,208	7,302	38,733	14,503
Income tax expense (Note 10)	8,297	3,367	10,115	2,515
Net income for the period from continuing operations	18,911	3,935	28,618	11,988
Net loss for the period from discontinued operations (Note 15)	(32)	(37,009)	(12,891)	(47,423)
Net income (loss) for the period	18,879	(33,074)	15,727	(35,435)

Other comprehensive (loss) income
Items that may be reclassified to profit or loss
Foreign operations currency translation	(7,168)	511	(6,862)	2,959
Change in fair value of hedging instruments (Note 21)	—	—	—	(206)
Income tax relating to these items (Note 10)	(1,226)	—	(1,226)	51
Other comprehensive (loss) income for the period	(8,394)	511	(8,088)	2,804
Comprehensive income (loss) for the period	10,485	(32,563)	7,639	(32,631)

Net income (loss) for the period attributable to:
AutoCanada shareholders	17,357	(34,282)	13,533	(36,689)
Non-controlling interests	1,522	1,208	2,194	1,254
	18,879	(33,074)	15,727	(35,435)
Net income (loss) for the period attributable to AutoCanada shareholders arises from:
Continuing operations	17,389	2,727	26,424	10,734
Discontinued operations	(32)	(37,009)	(12,891)	(47,423)
	13,533	(34,282)	13,533	(36,689)
Comprehensive income (loss) for the period attributable to:
AutoCanada shareholders	8,963	(33,771)	5,445	(33,885)
Non-controlling interests	1,522	1,208	2,194	1,254
	10,485	(32,563)	7,639	(32,631)
Comprehensive loss for the period attributable to
Continuing operations	17,054	2,727	19,899	10,579
Discontinued operations	(8,091)	(36,498)	(14,454)	(44,464)
	8,963	(33,771)	5,445	(33,885)

	Three-month period ended		Six-month period ended
	June 30, 2025 $	June 30, 2024 $	June 30, 2025 $	June 30, 2024 Revised ¹ $
Net income (loss) per share attributable to AutoCanada shareholders:
Basic from continuing operations	0.75	0.12	1.14	0.46
Basic from discontinued operations	0.00	(1.59)	(0.56)	(2.02)
Basic	0.75	(1.47)	0.58	(1.56)

Diluted from continuing operations	0.72	0.12	1.09	0.46
Diluted from discontinued operations	0.00	(1.59)	(0.53)	(2.02)
Diluted	0.72	(1.47)	0.56	(1.56)

Weighted average shares
Basic (Note 23)	23,145,912	23,374,790	23,143,813	23,479,098
Diluted (Note 23)	24,208,467	23,374,790	24,177,599	23,479,098

1 Comparative period revised to reflect current period presentation. See Note 15 - "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)

	June 30, 2025 (Unaudited) $	December 31, 2024 $
ASSETS
Current assets
Cash	62,409	67,343
Trade and other receivables (Note 12)	163,961	173,568
Inventories (Note 13)	806,654	947,278
Current tax recoverable	13,474	10,205
Other current assets (Note 18)	18,834	11,993
Derivative financial instrument (Note 21)	402	376
	1,065,734	1,210,763
Assets held for sale (Note 14)	303,271	332,693
Total current assets	1,369,005	1,543,456
Property and equipment (Note 16)	300,861	312,014
Right-of-use assets	349,916	389,958
Other long-term assets (Note 18)	12,552	16,501
Deferred income tax	20,222	18,840
Intangible assets	620,128	630,467
Goodwill	90,059	94,592
Total assets	2,762,743	3,005,828
LIABILITIES
Current liabilities
Trade and other payables (Note 19)	183,548	177,473
Revolving floorplan facilities (Note 20)	881,307	1,010,579
Current tax payable	—	3,766
Vehicle repurchase obligations	3,369	3,705
Indebtedness (Note 20)	23,715	24,108
Lease liabilities	25,213	35,780
Redemption liabilities	21,924	23,066
Other liabilities (Note 21)	11,347	11,063
Derivative financial instruments (Note 21)	—	1,741
	1,150,423	1,291,281
Liabilities directly associated with assets held for sale (Note 14)	151,399	201,966
Total current liabilities	1,301,822	1,493,247
Long-term indebtedness (Note 20)	478,524	517,543
Long-term lease liabilities	395,446	421,392
Long-term redemption liabilities	25,000	25,000
Derivative financial instruments (Note 21)	9,448	8,705
Deferred income tax	54,323	44,613
Total liabilities	2,264,563	2,510,500
EQUITY
Attributable to AutoCanada shareholders	476,453	468,027
Attributable to non-controlling interests	21,727	27,301
Total equity	498,180	495,328
	2,762,743	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		Six-month period ended
	June 30, 2025 $	June 30, 2024 $	June 30, 2025 $	June 30, 2024 $
Cash provided by (used in): Operating activities
Net income (loss) for the period	18,879	(33,074)	15,727	(35,435)
Adjustments for:
Income tax expense (Note 10)	8,297	16,953	10,115	16,101
Finance costs (Note 9, 15)	27,827	37,040	62,753	73,342
Depreciation of right-of-use assets (Note 8)	8,181	8,776	16,419	17,362
Depreciation of property and equipment (Note 8)	5,337	6,370	10,657	12,646
Amortization of intangible assets (Note 8)	125	125	248	251
Gain on disposal of assets, net (Note 27)	(862)	(3,359)	(13,915)	(22,626)
Share-based compensation (Note 22)	2,340	2,196	3,983	4,401
Unrealized fair value changes on foreign exchange forward contracts (Note 21)	(796)	(182)	(2,143)	2,191
Loss (gain) on redemption liabilities	1,183	642	(1,141)	642
Impairment of non-financial assets (Note 15, 17)	2,380	11,309	5,749	18,509
Net change in non-cash working capital (Note 26)	(26,374)	25,542	(202)	45,762
	46,517	72,338	108,250	133,146
Income taxes paid	(1,822)	(3,982)	(9,050)	(16,549)
Interest paid ¹	(24,885)	(30,269)	(60,687)	(71,955)
Tax withholdings paid on settlement of share-based awards	(229)	(1,038)	(229)	(1,079)
	19,581	37,049	38,284	43,563
Investing activities
Business acquisitions, net of cash acquired	—	(20,197)	—	(20,197)
Purchases of property and equipment	(7,140)	(8,743)	(10,143)	(20,021)
Additions to intangible assets	(58)	(331)	(128)	(672)
Adjustments to prior year business acquisitions	(47)	(491)	(47)	(505)
Proceeds on sale of property and equipment	1,079	10,223	1,105	51,628
Proceeds on divestiture of dealership (Note 27)	3,291	—	3,291	—
Proceeds on termination of loan agreement with subsidiary (Note 27)	—	—	30,107	—
Proceeds on franchise termination (Note 27)	—	—	894	—
	(2,875)	(19,539)	25,079	10,233
Financing activities
Proceeds from indebtedness	210,943	147,191	385,755	353,013
Repayment of indebtedness	(252,966)	(153,191)	(428,505)	(356,405)
Repurchase of common shares under Normal Course Issuer Bid	—	(5,778)	—	(7,722)
Shares settled from treasury, net (Note 23)	188	350	—	(181)
Payments for purchase of Used Digital Division minority interest	—		—	(22,500)
Dividends paid to non-controlling interests	(1,833)	—	(6,791)	(4,294)
Repayment of loans by non-controlling interests	—	—	—	2,236
Acquisition of non-controlling interests	—	—	(1,010)	—
Principal portion of lease payments, net	(9,775)	(7,960)	(18,215)	(15,754)
	(53,443)	(19,388)	(68,578)	(51,607)
Effect of exchange rate changes on cash	1,457	164	1,882	863
Net decrease in cash	(35,280)	(1,714)	(3,333)	3,052
Cash at beginning of period per balance sheet	101,468	107,912	67,343	103,146
Cash at beginning of period included in assets held for sale related to discontinued operations (Note 15)	37,827	—	40,005	—
Cash at end of period	104,015	106,198	104,015	106,198
Included in cash per balance sheet	62,409	106,198	62,409	106,198
Included in the assets held for sale of the discontinued operations (Note 15)	41,606	—	41,606	—

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, and share-based compensation amounts attributable to certain equity issuances as part of the transformation plan).

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 June 30:

	Three-Months Ended June 30, 2025			Three-Months Ended June 30, 2024 Revised ¹
	Canada	U.S.	Total	Canada	U.S.	Total
Period from April 1 to June 30
Net income (loss) for the period	18,576	303	18,879	2,430	(35,504)	(33,074)
Add back (deduct):
Income tax expense	8,297	—	8,297	3,367	13,586	16,953
Depreciation of right of use assets	8,181	—	8,181	8,020	756	8,776
Depreciation of property and equipment	5,332	5	5,337	5,752	618	6,370
Amortization of intangible assets	125	—	125	125	—	125
Interest on long-term indebtedness	8,755	937	9,692	5,390	3,016	8,406
Lease liability interest	7,732	746	8,478	7,741	803	8,544
Impairment of non-financial assets	2,380	—	2,380	—	11,309	11,309
Loss on redemption liabilities	1,183	—	1,183	642	—	642
Canadian franchise dealership restructuring charges	5,984	—	5,984	—	—	—
Unrealized fair value changes in derivative instruments	(3,454)	—	(3,454)	1,124	—	1,124
Unrealized foreign exchange losses (gains)	2,338	—	2,338	(29)	—	(29)
Software implementation costs	1,256	—	1,256	1,183	—	1,183
Cybersecurity incident costs	473	—	473	—	—	—
Acquisition related costs	36	—	36	—	—	—
Share-based compensation for transformation plan awards	1,281	—	1,281	—	—	—
(Gain) loss on disposal of assets	(1,979)	16	(1,963)	(3,359)	—	(3,359)
Adjusted EBITDA	66,496	2,007	68,503	32,386	(5,416)	26,970
Adjusted EBITDA from discontinued operations	(1,995)	(2,128)	(4,123)	1,083	5,416	6,499
Adjusted EBITDA from continuing operations	64,501	(121)	64,380	33,469	—	33,469

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 June 30. There is no discontinued operation in Collision Operations.

	Three-Months Ended June 30, 2025			Three-Months Ended June 30, 2024
Collision Operations	Canada	U.S.	Total	Canada	U.S.	Total
Period from April 1 to June 30
Net income for the period	1,856	(126)	1,730	1,344	—	1,344
Add back:
Depreciation of right of use assets	698	—	698	538	—	538
Depreciation of property and equipment	463	5	468	398	—	398
Lease liability interest	973	—	973	775	—	775
Loss (gain) on disposal of assets	(132)	—	(132)	10	—	10
Adjusted EBITDA	3,858	(121)	3,737	3,065	—	3,065

Adjusted EBITDA Margin

The following table illustrates segmented adjusted EBITDA margin from continuing operations for the three-month periods ended June 30:

	Three-Months Ended June 30, 2025			Three-Months Ended June 30, 2024 Revised ¹
	Canada	U.S.	Total	Canada	U.S.	Total
Adjusted EBITDA	64,501	(121)	64,380	33,469	—	33,469
Revenue	1,337,674	525	1,338,199	1,381,150	—	1,381,150
Adjusted EBITDA Margin	4.8 %	(23.0) %	4.8 %	2.4 %	— %	2.4 %

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 tables illustrate segmented normalized opex before depreciation and normalized opex before depreciation as a percentage of gross profit from continuing operations, for the three-month periods and six-month periods ended June 30:

	Three-Months Ended June 30, 2025			Three-Months Ended June 30, 2024 Revised ¹
	Canada	U.S.	Total	Canada	U.S.	Total
Operating expenses before depreciation	156,786	308	157,094	172,680	—	172,680
Normalizing Items:
Add back:
Acquisition-related costs	(36)	—	(36)	(557)	—	(557)
Software implementation costs	(1,256)	—	(1,256)	(1,183)	—	(1,183)
Canadian franchise dealership restructuring charges	(5,984)	—	(5,984)	—	—	—
Management transition costs	—	—	—	(4,704)	—	(4,704)
Share-based compensation expense	(2,340)	—	(2,340)	(2,196)	—	(2,196)
Normalized Opex before depreciation	147,170	308	147,478	164,040	—	164,040
Gross profit	225,180	187	225,367	220,758	—	220,758
Normalized Opex Before Depreciation as a percentage of gross profit (%)	65.4 %	164.7 %	65.4 %	74.3 %	— %	74.3 %

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, expected run-rate operational expense savings from the implementation of the ACX Operating Method, the expected aggregate proceeds from the U.S. dealership divestitures, the completion and the anticipated timing of completion of the U.S. dealership disposition transactions, engagement in selling the remaining dealerships of the U.S. Operations segment, and the impact of the U.S. dealership divestitures on the Company's leverage ratio.

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 June 30, 2025, operates 64 franchised dealerships in Canada, comprised of 23 brands, in 8 provinces. AutoCanada currently sells Acura, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, 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 independent used dealerships dealerships ("Used Vehicle Operations") and 14 stand-alone collision centres within our group of 30 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.

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