AutoCanada Inc. announces record fourth quarter and record annual financial results for the period ended December 31, 2011:

A conference call to discuss the results for the year ended December 31, 2011 will be held on March 23, 2012 at 11:00 a.m. Eastern time (9:00 a.m. Mountain time). To participate in the conference call, please dial 1-888-231-8191 or [phone] approximately 10 minutes prior to the call. A live and archived audio webcast of the conference call will also be available on the Company's website www.autocan.ca.

EDMONTON, March 22, 2012 /CNW/ - AutoCanada Inc. (the "Company" or "AutoCanada") (TSX: ACQ) today announced financial results for the year ended December 31, 2011 and the three month period ended December 31, 2011.

                         2011 Annual Operating Results

• Revenue increased by 16.0% or $139.4 million to over $1 billion
• Gross profit increased by 12.7% or $19.1 million
• Same store revenue increased by 17.3%
• Same store gross profit increased by 13.9%
• EBITDA was $29.1 million vs. $16.7 million in 2010, a 74% increase
• The number of new vehicles retailed increased by 13.6%
• The number of used vehicles retailed decreased by 1.0%
• Repair orders completed for the year were down 1.4%
• Same store repair orders completed for the year were up 1.0%

In commenting on the financial results for the year ended December 31, 2011, Pat Priestner, Chief Executive Officer of AutoCanada Inc. stated that, "The Company reached a significant milestone this year with sales exceeding the billion dollar threshold for the first time in our history.  We achieved record results in 2011 with significant improvements to sales, gross profit and net earnings.  Our management team is very pleased with the performance of our dealerships in 2011 and would like to express our gratitude for the hard work and dedication of the members of our dealership teams, our head office team, our Manufacturer partners, and finance providers, all of whom contributed greatly to this achievement.  In addition, Management is pleased to be currently pursuing a number of opportunities, which if successful, could provide additional sources of long term shareholder value."

                         2011 Fourth Quarter Operating Results

• Revenue increased 20.4% or $40.4 million
• Gross profit increased by 18.2% or $6.5 million
• Same store revenue increased by 24.8%
• Same store gross profit increased by 20.6%
• EBITDA was $7.5 million vs. $3.5 million in Q4 of 2010, a 117.6% increase
• The number of new vehicles retailed increased by 13.2%
• The number of used vehicles retailed increased by 12.0%
• Repair orders completed for the quarter were down 1.5%
• Same store repair orders completed for the quarter were up 4.2%

In commenting on the financial results for the three month period ended December 31, 2011, Pat Priestner, Chief Executive Officer of AutoCanada Inc. stated that, "The fourth quarter of 2011 was a very strong quarter for the Company with increases in revenue and gross profit in all four business streams.  We are pleased to have more than doubled our EBITDA for the quarter and to have increased our dividend for the fourth consecutive quarter, as announced on February 15, 2012."

Fourth Quarter 2011 Highlights

• For the fourth quarter of 2011, the Company generated net earnings before other items (reversal of impairment of intangible assets and its related tax effect) of $4.5 million or basic and diluted earnings per share of $0.23.  Pre-tax earnings before other items (reversal of impairment of intangible assets) increased by $4.3 million to $6.2 million in the fourth quarter of 2011 as compared to $1.9 million in the same period in 2010.
• Same store revenue increased by 24.8% in the fourth quarter of 2011, compared to the same quarter in 2010.  Same store gross profit increased by 20.6% in the fourth quarter of 2011, compared to the same quarter in 2010.
• Revenue from existing and new dealerships increased 20.4% to $238.3 million in the fourth quarter of 2011 from $197.9 million in the same quarter in 2010.
• Gross profit from existing and new dealerships increased 18.2% to $42.2 million in the fourth quarter of 2011 from $35.7 million in the same quarter in 2010.
• EBITDA increased 117.6% to $7.5 million in the fourth quarter of 2011 from $3.5 million in the same quarter in 2010.
• Free cash flow increased to $9.0 million in the fourth quarter of 2011 or $0.45 per share as compared to $5.7 million or $0.29 per share in the fourth quarter of 2010.
• Adjusted free cash flow increased to $7.4 million in the fourth quarter of 2011 or $0.37 per share as compared to $2.7 million or $0.14 per share in 2010.
• Adjusted return on capital employed increased to 5.3% in the fourth quarter of 2011 as compared to 2.0% in 2010.

2011 Highlights

• For the year ended December 31, 2011, the Company generated net earnings before other items (reversal of impairment of intangible assets and its related tax effect) of $17.6 million, or basic and fully diluted earnings per share of $0.89.  Pre-tax earnings before other items (reversal of impairment of intangible assets) increased by $12.3 million to $23.8 million for the year ended December 31, 2011 as compared to $11.5 million in 2010.
• Same store revenue and gross profit increased by 17.3% and 13.9% respectively in the year ended December 31, 2011, compared to the results of the Company for the 2010 year.
• Revenue from existing and new dealerships increased 16.0% to $1.01 billion in the year ended December 31, 2011 from the $869.5 million that was generated by the Company in 2010.
• Gross profit from existing and new dealerships increased by 12.7% to $169.1 million in the year ended December 31, 2011 from the $150.0 million that was generated by the Company in the 2010 year.
• EBITDA increased 74.0% to $29.1 million for the year ended December 31, 2011 from the $16.7 million that was generated by the Company in the 2010 year.
• Free cash flow decreased to $27.1 million in the year ended December 31, 2011 or $1.36 per share as compared to $29.9 million or $1.51 per share in 2010.
• Adjusted free cash flow increased to $27.7 million in the year ended December 31, 2011 or $1.39 per share as compared to $14.0 million or $0.70 per share in 2010.
• On November 4, 2011, the Company purchased substantially all of the net operating and fixed assets of Valley Autohouse (1984) Ltd. operating two dealerships as Valley Autohouse ("Abbotsford and Chilliwack Volkswagen").  The Abbotsford facility is an approximately 9,300 sq. ft. leased facility which includes eight service bays and a six car showroom. The dealership has been in operation since 1986 and in 2010 retailed approximately 210 new and 190 used vehicles.  The Chilliwack facility is an approximately 4,500 sq. ft. leased facility which includes 3 service bays and a single car showroom.  The dealership has been in operation since 2002 and in 2010 retailed approximately 30 new and 40 used vehicles.

Dividends

Management reviews the Company's financial results on a monthly basis.  The Board of Directors reviews the financial results on a quarterly basis, or as requested by Management, and determine whether a dividend shall be paid based on a number of factors.

The following table summarizes the dividends declared by the Company in 2011:

(In thousands of dollars)
							Total
Record date	Payment date						Declared		Paid
							$		$
February 28, 2011	March 15, 2011						795		795
May 31, 2011	June 15, 2011						995		995
August 31, 2011	September 15, 2011						1,988		1,988
November 30, 2011	December 15, 2011						2,386		2,386

On February 15, 2012, the Board declared a quarterly eligible dividend of $0.14 per common share on AutoCanada's outstanding Class A common shares, payable on March 15, 2012 to shareholders of record at the close of business on February 29, 2012.  The quarterly eligible dividend of $0.14 represents an annual dividend rate of $0.56 per share or a 17% increase in the dividend from the prior quarter.  The next scheduled dividend review will be in May of 2012.

SELECTED ANNUAL FINANCIAL INFORMATION

The following table shows the audited results of the Company for the years ended December 31, 2009, December 31, 2010 and December 31, 2011.  The results of operations for these periods are not necessarily indicative of the results of operations to be expected in any given comparable period.  The column below marked "CGAAP" represents financial information which has not been restated for the Company's adoption of IFRS and readers are cautioned that this column may not provide appropriate comparative information.

(In thousands of dollars except Operating Data and gross profit %)				The Company CGAAP (Audited)		The Company IFRS (Audited)	The Company IFRS (Audited)
				2009		2010	2011
Income Statement Data Revenue				775,836		869,507	1,008,858
New vehicles				412,203		514,676	640,721
Used vehicles				212,234		202,552	206,030
Parts, service &  collision repair				108,164		108,558	110,262
Finance, insurance & other				43,235		43,721	51,845
Gross profit				141,976		150,020	169,124
New vehicles				29,308		38,164	47,705
Used vehicles				19,913		16,885	17,381
Parts, service & collision repair				53,338		55,888	57,480
Finance, insurance & other				39,417		39,083	46,558
Gross profit %				18.3%		17.3%	16.8%
Operating expenses				121,813		130,237	136,846
Operating expenses as % of gross profit				85.8%		86.8%	80.9%
Finance costs - floorplan				4,855		7,536	8,057
Finance costs - long term debt				1.647		1,076	1,136
(Reversal of) Impairment of intangible assets				-		(8,059)	(25,543)
Income taxes				449		4,956	12,509
Net earnings				12,578		14,596	36,784
EBITDA ^1				18,352		16,740	29,131
Cash dividends per share				0.062		0.120	0.310
Basic earnings (loss) per share				0.633		0.734	1.850
Diluted earnings (loss) per share				0.633		0.734	1.850
Operating Data Vehicles (new and used) sold				23,083		24,239	27,998
New retail vehicles sold				11,117		12,767	14,499
New fleet vehicles sold				2,233		2,717	4,832
Used retail vehicles sold				9,733		8,755	8,667
Number of service & collision repair orders completed				301,282		309,705	305,298
Absorption rate ^2				89%		86%	88%
# of dealerships				22		23	24
# of same store dealerships ^3				19		21	21
# of service bays at period end				331		339	333
Same store revenue growth ^3				(10.5)%		10.5%	17.3%
Same store gross profit growth ^3				(7.8)%		4.1%	13.9%

^1	EBITDA has been calculated as described under "NON-GAAP MEASURES".
^2	Absorption has been calculated as described under "NON-GAAP MEASURES"
^3	Same store revenue growth & same store gross profit growth is calculated using franchised automobile dealerships that we have owned for at least 2 full years.

SELECTED QUARTERLY FINANCIAL INFORMATION

The following table shows the unaudited results of the Company for each of the eight most recently completed quarters.  The results of operations for these periods are not necessarily indicative of the results of operations to be expected in any given comparable period.

(In thousands of dollars except Operating Data and gross profit %)
		Q1 2010		Q2 2010		Q3 2010		Q4 2010		Q1 2011		Q2 2011		Q3 2011		Q4 2011
Income Statement Data
New vehicles		114,520		144,655		141,533		113,967		128,303		196,850		172,688		142,880
Used vehicles		49,034		57,181		50,922		45,414		44,906		52,054		55,351		53,719
Parts, service & collision repair		26,168		27,501		26,540		28,351		26,462		28,256		26,871		28,673
Finance, insurance & other		10,067		12,442		11,060		10,151		11,113		13,577		14,109		13,046
Revenue		199,789		241,779		230,055		197,883		210,784		290,737		269,019		238,318
New vehicles		8,128		11,030		9,983		9,023		9,724		13,974		12,740		11,267
Used vehicles		4,099		4,906		4,221		3,659		3,486		4,302		5,020		4,573
Parts, service & collision repair		13,252		14,612		14,031		13,994		13,277		15,159		14,493		14,551
Finance, insurance & other		9,082		11,107		9,843		9,050		9,947		12,117		12,641		11,853
Gross profit		34,561		41,655		38,078		35,725		36,434		45,552		44,894		42,244
Gross profit %		17.3%		17.2%		16.6%		18.1%		17.3%		15.7%		16.7%		17.7%
Operating expenses		30,740		34,280		33,207		32,010		31,891		35,127		35,742		34,086
Operating exp. as % of gross profit		88.9%		82.3%		87.2%		89.6%		87.5%		77.1%		79.6%		80.7%
Finance costs - floorplan		1,670		2,230		2,042		1,594		1,685		2,311		2,190		1,871
Finance costs - long-term debt		236		230		278		332		283		323		296		234
Reversal of impairment of intangibles		-		-		-		(8,059)		-		-		-		(25,543)
Income taxes		516		1,330		692		2,418		690		2,029		1,646		8,144
Net earnings ^4		1,414		3,624		1,983		7,575		1,995		5,951		5,230		23,608
EBITDA ^1, 4 Basic earnings (loss) per share Diluted earnings (loss) per share		3,096 0.071 0.071		6,164 0.182 0.182		4,011 0.100 0.100		3,469 0.381 0.381		4,047 0.100 0.100		9,321 0.299 0.299		8,216 0.263 0.263		7,547 1.187 1.187
Operating Data Vehicles (new and used) sold		5,676		6,994		6,350		5,219		5,826		8,210		7,649		6,313
New retail vehicles sold		2,787		3,614		3,358		3,008		3,050		4,158		3,907		3,405
New fleet vehicles sold		661		919		831		306		796		1,900		1,340		775
Used retail vehicles sold		2,228		2,461		2,161		1,905		1,980		2,152		2,402		2,133
Number of service & collision repair orders completed		75,311		80,072		77,285		77,037		72,360		80,851		76,176		75,911
Absorption rate ^2		85%		87%		85%		86%		80%		91%		90%		91%
# of dealerships at period end		22		23		23		23		23		22		22		24
# of same store dealerships ^3		19		19		19		21		22		21		21		21
# of service bays at period end		331		339		339		339		339		322		322		333
Same store revenue growth ^3		16.9%		19.4%		6.7%		2.4%		2.7%		19.3%		21.6%		24.8%
Same store gross profit growth ^3		11.1%		7.5%		(4.0)%		2.9%		2.9%		8.2%		22.9%		20.6%
Balance Sheet Data
Cash and cash equivalents		23,615		31,880		34,329		37,541		39,337		43,837		49,366		53,641
Accounts receivable		40,701		46,787		37,149		32,832		42,260		51,539		44,172		42,448
Inventories		153,847		177,294		137,507		118,088		134,865		149,481		159,732		136,869
Revolving floorplan facilities		160,590		194,388		145,652		124,609		152,075		172,600		175,291		150,816

^1	EBITDA has been calculated as described under "NON-GAAP MEASURES".
^2	Absorption has been calculated as described under "NON-GAAP MEASURES".
^3	Same store revenue growth & same store gross profit growth is calculated using franchised automobile dealerships that we have owned for at least 2 full years.
^4	The results from operations have been lower in the first and fourth quarters of each year, largely due to consumer purchasing patterns during the holiday season, inclement weather and the reduced number of business days during the holiday season. As a result, our financial performance is generally not as strong during the first and fourth quarters than during the other quarters of each fiscal year. The timing of acquisitions may have also caused substantial fluctuations in operating results from quarter to quarter.

The following table summarizes the results for the year ended December 31, 2011, on a same store basis by revenue source, and compares these results to the same periods in 2010.

Same Store Gross Profit and Gross Profit Percentage
				For the Year Ended
				Gross Profit				Gross Profit %
(In thousands of dollars except % change and gross profit %)				Dec. 31, 2011	Dec. 31, 2010	% Change		Dec. 31, 2011		Dec. 31, 2010	Change
Revenue Source New vehicles				45,772	36,389	25.8%		7.6%		7.6%	0.0%
Used vehicles				16,897	16,772	0.7%		8.5%		8.6%	(0.1)%
Finance, insurance and other				44,941	37,407	20.1%		90.6%		89.9%	0.6%
Subtotal				107,610	90,568	19.4%
Parts, service and collision repair				54,609	51,886	5.2%		52.2%		51.4%	0.7%
Total				162,219	142,454	13.9%		16.9%		17.4%	(0.5)%

The following table summarizes the results for the three-month period ended December 31, 2011 on a same store basis by revenue source and compares these results to the same period in 2010.

Same Store Gross Profit and Gross Profit Percentage
	For the Three-Month Period Ended
	Gross Profit						Gross Profit %
(In thousands of dollars except % change and gross profit %)	Dec. 31, 2011		Dec. 31, 2010	% Change			Dec. 31, 2011		Dec. 31, 2010	Change
Revenue Source
New vehicles	10,835		8,554	26.7%			7.9%		8.2%	(0.3)%
Used vehicles	4,398		3,620	21.5%			8.4%		8.3%	0.1%
Finance, insurance and other	11,507		8,558	34.5%			91.5%		89.9%	1.6%
Subtotal	26,740		20,732	29.0%
Parts, service and collision repair	13,923		12,981	7.3%			50.7%		49.2%	1.5%
Total	40,663		33,713	20.6%			17.8%		18.4%	(0.6)%

About AutoCanada

AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 24 franchised dealerships in British Columbia, Alberta, Manitoba, Ontario, New Brunswick and Nova Scotia. In 2011, our dealerships sold approximately 28,000 vehicles and processed approximately 300,000 service and collision repair orders in our 333 service bays during that time.

Our dealerships derive their revenue from the following four inter-related business operations: new vehicle sales; used vehicle sales; parts, service and collision repair; and finance and insurance. While new vehicle sales are the most important source of revenue, they generally result in lower gross profits than used vehicle sales, parts, service and collision repair operations and finance and insurance sales. Overall gross profit margins increase as revenues from higher margin operations increase relative to revenues from lower margin operations. We earn fees for arranging financing on new and used vehicle purchases on behalf of third parties.  Under our agreements with our retail financing sources we are required to collect and provide accurate financial information, which if not accurate, may require us to be responsible for the underlying loan provided to the consumer.

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 our 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", "expect", "plan", "seek", "may", "intend", "likely", "will", "believe" and similar expressions are not 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.  Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements.  Therefore, any such forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this document.

The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference.

Further, any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by applicable law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.  New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

NON-GAAP MEASURES

This press release contains certain financial measures that do not have any standardized meaning prescribed by Canadian 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 earnings (loss) or to cash provided by (used in) operating, investing, and financing activities determined in accordance with Canadian GAAP, as indicators of our performance.  We provide these measures to assist investors in determining our ability to generate earnings and cash provided by (used in) operating activities and to provide additional information on how these cash resources are used.  We list and define these "NON-GAAP MEASURES" below:

EBITDA

EBITDA is a measure commonly reported and widely used by investors as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric.  The Company believes EBITDA assists investors in comparing a company's performance on a consistent basis without regard to depreciation and amortization and asset impairment charges which are non-cash in nature and can vary significantly depending upon accounting methods or non-operating factors such as historical cost.  References to "EBITDA" are to earnings before interest expense (other than interest expense on floorplan financing and other interest), income taxes, depreciation, amortization and asset impairment charges.

EBIT

EBIT is a measure used by management in the calculation of Return on capital employed (defined below).  Management's calculation of EBIT is EBITDA (calculated above) less depreciation and amortization.

Free Cash Flow

Free cash flow is a measure used by management to evaluate its performance.  While the closest Canadian GAAP measure is cash provided by operating activities, free cash flow is considered relevant because it provides an indication of how much cash generated by operations is available after capital expenditures.  It shall be noted that although we consider this measure to be free cash flow, financial and non-financial covenants in our credit facilities and dealer agreements may restrict cash from being available for distributions, re-investment in the Company, potential acquisitions, or other purposes.  Investors should be cautioned that free cash flow may not actually be available for growth or distribution of the Company.  References to "Free cash flow" are to cash provided by (used in) operating activities (including the net change in non-cash working capital balances) less capital expenditures (not including acquisitions of dealerships and dealership facilities).

Adjusted Free Cash Flow

Adjusted free cash flow is a measure used by management to evaluate its performance.  Adjusted free cash flow is considered relevant because it provides an indication of how much cash generated by operations before changes in non-cash working capital is available after deducting expenditures for non-growth capital assets.  It shall be noted that although we consider this measure to be adjusted free cash flow, financial and non-financial covenants in our credit facilities and dealer agreements may restrict cash from being available for distributions, re-investment in the Company, potential acquisitions, or other purposes.  Investors should be cautioned that adjusted free cash flow may not actually be available for growth or distribution of the Company.  References to "Adjusted free cash flow" are to cash provided by (used in) operating activities (before changes in non-cash working capital balances) less non-growth capital expenditures.

Adjusted Average Capital Employed

Adjusted average capital employed is a measure used by management to determine the amount of capital invested in AutoCanada and is used in the measure of Adjusted Return on Capital Employed (described below).  Adjusted average capital employed is calculated as the average balance of interest bearing debt for the period (including current portion of long term debt, excluding revolving floorplan facilities) and the average balance of shareholders equity for the period, adjusted for impairments of intangible assets, net of deferred tax.  Management does not include future income tax, non-interest bearing debt, or revolving floorplan facilities in the calculation of adjusted average capital employed as it does not consider these items to be capital, but rather debt incurred to finance the operating activities of the Company.

Absorption Rate

Absorption rate is an operating measure commonly used in the retail automotive industry as an indicator of the performance of the parts, service and collision repair operations of a franchised automobile dealership. Absorption rate is not a measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP. Therefore, absorption rate may not be comparable to similar measures presented by other issuers that operate in the retail automotive industry.  References to ''absorption rate'' are to the extent to which the gross profits of a franchised automobile dealership from parts, service and collision repair cover the costs of these departments plus the fixed costs of operating the dealership, but does not include expenses pertaining to our head office. For this purpose, fixed operating costs include fixed salaries and benefits, administration costs, occupancy costs, insurance expense, utilities expense and interest expense (other than interest expense relating to floor plan financing) of the dealerships only.

Average Capital Employed

Average capital employed is a measure used by management to determine the amount of capital invested in AutoCanada and is used in the measure of Return on Capital Employed (described below).  Average capital employed is calculated as the average balance of interest bearing debt for the period (including current portion of long term debt, excluding revolving floorplan facilities) and the average balance of shareholders equity for the period.  Management does not include future income tax, non-interest bearing debt, or revolving floorplan facilities in the calculation of average capital employed as it does not consider these items to be capital, but rather debt incurred to finance the operating activities of the Company.

Return on Capital Employed

Return on capital employed is a measure used by management to evaluate the profitability of our invested capital.  As a corporation, management of AutoCanada may use this measure to compare potential acquisitions and other capital investments against our internally computed cost of capital to determine whether the investment shall create value for our shareholders.  Management may also use this measure to look at past acquisitions, capital investments and the Company as a whole in order to ensure shareholder value is being achieved by these capital investments.  Return on capital employed is calculated as EBIT (defined above) divided by Average Capital Employed (defined above).

Adjusted Return on Capital Employed

Adjusted return on capital employed is a measure used by management to evaluate the profitability of our invested capital.  As a corporation, management of AutoCanada may use this measure to compare potential acquisitions and other capital investments against our internally computed cost of capital to determine whether the investment shall create value for our shareholders.  Management may also use this measure to look at past acquisitions, capital investments and the Company as a whole in order to ensure shareholder value is being achieved by these capital investments.  Adjusted return on capital employed is calculated as EBIT (defined above) divided by Adjusted Average Capital Employed (defined above).

Cautionary Note Regarding Non-GAAP Measures

EBITDA, EBIT, Free Cash Flow, Adjusted Free Cash Flow, Absorption Rate, Average Capital Employed and Return on Capital Employed 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, of its cash flows from operating, investing and financing activities or as a measure of its liquidity and cash flows. The Company's methods of calculating EBITDA, EBIT, Free Cash Flow, Adjusted Free Cash Flow, Absorption Rate, Average Capital Employed and Return on Capital Employed may differ from the methods used by other issuers. Therefore, the Company's EBITDA, EBIT, Free Cash Flow, Adjusted Free Cash Flow, Absorption Rate, Average Capital Employed and Return on Capital Employed may not be comparable to similar measures presented by other issuers.

Additional information about AutoCanada Inc. is available at the Company's website at www.autocan.ca and www.sedar.com.

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

	December 31, 2011 $	December 31, 2010 $
Revenue	1,008,858	869,507
Cost of sales	(839,734)	(719,487)
Gross profit	169,124	150,020
Operating expenses	(136,846)	(130,237)
Operating profit before other income	32,278	19,783
Gain (loss) on disposal of assets	(41)	6
Reversal of impairment of assets	25,543	8,059
Operating profit	57,780	27,848
Finance costs	(9,848)	(9,217)
Finance income	1,361	921
Net comprehensive income for the year before taxation	49,293	19,552
Income tax	12,509	4,956
Net comprehensive income for the period	36,784	14,596
Earnings per share
Basic	1.850	0.734
Diluted	1.850	0.734
Weighted average shares
Basic	19,880,930	19,880,930
Diluted	19,880,930	19,880,930

The accompanying notes are an integral part of these consolidated financial statements.

Approved on behalf of the Company:

(Signed) "Gordon R. Barefoot", Director (Signed) "Robin Salmon", Director

AutoCanada Inc.
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)

	December 31,                  2011   $	December 31,                  2010  $	January 1, 2010 $
ASSETS
Current assets
Cash and cash equivalents	53,641	37,541	21,528
Trade and other receivables	42,448	32,832	35,323
Inventories	136,869	118,088	108,324
Other current assets	1,120	1,148	1,646
	234,078	189,609	166,821
Property and equipment	25,975	25,590	17,600
Intangible assets	66,181	40,018	30,600
Goodwill	380	309	-
Other long-term assets	7,609	5,909	2,198
Deferred tax	-	-	3,492
	334,223	261,435	220,711
LIABILITIES
Current liabilities
Trade and other payables	32,132	26,622	24,831
Revolving floorplan facilities	150,816	124,609	102,370
Current tax payable	2,046	-	-
Current lease obligations	1,204	907	175
Current indebtedness	2,859	277	96
	189,057	152,415	127,472
Long-term lease obligations	-	120	289
Long-term indebtedness	20,115	24,974	22,785
Deferred tax	12,056	1,552	-
	221,228	179,061	150,546
EQUITY
Share capital	190,435	190,435	190,435
Contributed surplus	3,918	3,918	3,918
Accumulated deficit	(81,358)	(111,979)	(124,188)
	112,995	82,374	70,165
	334,223	261,435	220,711

The accompanying notes are an integral part of these consolidated financial statements.

AutoCanada Inc.
Consolidated Statements of Changes in Equity
For the Years Ended
(in thousands of Canadian dollars)

	Share capital $	Contributed surplus $	Total capital $	Accumulated deficit $	Equity $
Balance,  January 1, 2011	190,435	3,918	194,353	(111,979)	82,374
Net comprehensive income	-	-	-	36,784	36,784
Dividends declared on common shares	-	-	-	(6,163)	(6,163)
Balance, December 31, 2011	190,435	3,918	194,353	(81,358)	112,995

	Share capital $	Contributed surplus $	Total capital $	Accumulated deficit $	Equity $
Balance, January 1, 2010	190,435	3,918	194,353	(124,188)	70,165
Net comprehensive income	-	-	-	14,596	14,596
Dividends declared on common shares	-	-	-	(2,387)	(2,387)
Balance, December 31, 2010	190,435	3,918	194,353	(111,979)	82,374

The accompanying notes are an integral part of these consolidated financial statements.

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

	December 31, 2011 $	December 31, 2010 $
Cash provided by (used in)
Operating activities
Net comprehensive income	36,784	14,596
Income taxes	12,509	4,956
Shared-based payments	302	57
Amortization of property and equipment	4,245	4,171
Amortization of prepaid rent	452	452
Loss (gain) on disposal of property and equipment	40	(6)
Gain on reversal of impairment of assets	(25,543)	(8,059)
Net change in non-cash working capital	1,238	18,177
	30,027	34,344
Investing activities
Business acquisitions	(1,753)	(3,550)
Purchases of property and equipment	(2,954)	(10,487)
Proceeds on sale of property and equipment	79	64
Prepayments of rent	(2,160)	(4,163)
Proceeds on divestiture of dealership	1,464	-
	(5,324)	(18,136)
Financing activities
Repayment of long term indebtedness	(2,440)	(4,318)
Proceeds from long term indebtedness	-	6,510
Dividends paid	(6,163)	(2,387)
	(8,603)	(195)
Increase in cash	16,100	16,013
Cash and cash equivalents at beginning of year	37,541	21,528
Cash and cash equivalents at end of year	53,641	37,541

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

 

 

Jeff Christie, CA

Vice-President, Finance

Phone:  [phone]   Email: [email protected]