AutoCanada Reports Record 2020 Fourth Quarter Results - Adjusted EBITDA of $40.5 Million Outpaces Prior Year by 92.1% and Canadian Market Outperformance is Extended to Eighth Consecutive Quarter

• Revenue was $876.1 million as compared to $809.1 million in the prior year, an increase of 8.3% and the highest fourth quarter revenue reported in the Company's history
• Adjusted EBITDA was $40.5 million versus $21.1 million in the prior year, an increase of 92.1%; Adjusted EBITDA Pre-IFRS 16 was $30.6 million versus $10.9 million, an increase of 179.7%
• Adjusted EBITDA margin was 4.6% versus 2.6% in the prior year, an increase of 2.0 percentage points
• Basic earnings per share was $0.87, an increase of $1.50 from $(0.63) in the prior year
• Outperformed the Canadian new retail vehicle market for the eighth consecutive quarter with same store new retail unit sales increasing 0.7% compared to the Canadian market decrease of (4.9)% as reported by DesRosiers Automotive Consultants
• Canadian used to new retail units ratio increased to 0.93 from 0.84 last year and the trailing twelve month ratio improved to 0.95 at Q4 2020 as compared to 0.78 at Q4 2019
• Net indebtedness of $89.5 million at the end of Q4 2020 compares to $157.9 million at the end of Q4 2019; free cash flow for the year of $131.4 million compares to $99.9 million in the prior year; net debt leverage on a pre-IFRS 16 basis improves to 1.3x from 2.6x at the end of the prior year

EDMONTON, AB, March 2, 2021 /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 and twelve month period ended December 31, 2020.

"We achieved another record-setting quarter as the actions taken to strengthen the business model and position the Company for top-decile operating performance allowed us to improve year-over-year performance on almost every measure. Continued strong used vehicles sales, improvements in new vehicle sales and our disciplined focus on cost management and operational excellence were key drivers of our performance," said Paul Antony, Executive Chairman of AutoCanada.

"We're extremely pleased with the progress over this past year in demonstrating the strength of our business model. We have positive momentum exiting the year, and we're excited about the many opportunities in front of us. With the learnings we take with us from going through the COVID-19 pandemic, we remain better positioned than we've ever been in the history of the company to continue to deliver industry-leading performance. The strength of our operating platform and balance sheet has enabled us to pivot to an acquisition and innovation strategy, and we continue to assess our acquisition opportunities with the goal of diversifying by geography and brands, in addition to expanding our network of used dealerships and collision centres."

2020 Fourth Quarter Key Highlights and Recent Developments

All comparisons presented below are between the three-month period ended December 31, 2020 and the three-month period ended December 31, 2019, unless otherwise indicated.

Executive Overview

The momentum generated by the Company's record-setting third quarter performance carried over into the fourth quarter of 2020 as revenue reached $876.1 million as compared to $809.1 million in the prior year, an increase of 8.3%. For the eighth consecutive quarter, we outperformed the Canadian new vehicle retail market as our new retail unit sales increased by 0.7% compared to the Canadian market decrease of (4.9)% as reported by DesRosiers Automotive Consultants.

Fourth quarter Adjusted EBITDA of $40.5 million compares to $21.1 million reported in Q4 2019 and represents an improvement of 92.1%. The growth in Adjusted EBITDA is attributable to a combination of strengthened used vehicle performance and effective operating expense management, specifically the control of personnel costs during the quarter.

Gross profit increased by $13.1 million (+9.4%) versus prior year with $7.1 million of the improvement ascribed to used vehicles; gross profit margin on used vehicles increased to 7.7% as compared to 5.8% in Q4 2019 while used retail unit sales increased by 432 units (+6.2%) to 7,389, which contributed to the consolidated used to new retail units ratio moving to 0.86 from 0.79.

While used vehicles drove gross profit growth, the Company's leaner operating model and effective cost management measures permitted improved profit retention as operating expenses as a percent of gross profit decreased to 78.1% as compared to 89.6% in the prior year. Most notably, employee costs as a percent of gross profit improved to 47.5% versus 50.9% in Q4 2019.

Captured within fourth quarter Adjusted EBITDA of $40.5 million is CEWS income of $2.8 million along with a rent subsidy benefit of $0.2 million. Offsetting these gains were typically non-recurring charges associated with COVID-19 totaling $(3.0) million, including an inventory write-down of $(1.8) million applied to Canadian new vehicle inventory, one-time employee recognition payments of $(0.3), and operational incentive payments of $(0.9) million. Excluding these typically non-recurring income and expense items, normalized Adjusted EBITDA remains unchanged from Adjusted EBITDA at $40.5 million.

Net indebtedness increased by $8.1 million from September 30, 2020 and decreased by $(68.4) million compared to December 31, 2019. Free cash flow on a trailing twelve month ("TTM") basis was $131.4 million at Q4 2020 as compared to $99.9 million in Q4 2019. Additionally, our net indebtedness leverage ratio improved to 1.3x at the end of Q4 2020, as compared to 2.6x in the prior year.

During Q4 2020, the acquisitions of Auto Bugatti, Autohaus of Peoria and Haldimand Motors accounted for a net cash outflow of $10.7 million, excluding assumed floorplan liability.

We remain focused on the execution of the Go Forward Plan and the vision to build a complete, stable, and resilient business model. As we push ahead toward this goal, we continue to view used vehicles as a significant area of opportunity and have adopted a strategic approach to used vehicle inventory management which prioritizes profit maximization over loss aversion. In support of this strategy, we made a concerted effort to increase our used vehicle inventory position to $218.8 million as at December 31, 2020 compared to $134.4 million in the prior year, an increase of $84.4 million or 62.8%. Our strong inventory position is expected to meet market demand and maximize profitability as we enter the prime selling months of 2021.

During the fourth quarter, the Company announced the development of the Used Digital Retail Division as a part of our digital retail initiative. This division will drive the development of a national network of used vehicle dealers through both organic development and acquisitions - such as Haldimand Motors - as well as an online platform, and will represent Canada's first national used vehicle platform.

With our recent performance, the resiliency of our business model and our strong balance sheet, we are actively assessing acquisition opportunities in a strategic manner. Given the current position of the business and available market opportunities, there is significant opportunity for the Company to grow as an industry consolidator in both the short-term and long-term.

Looking ahead, while we are confident that the measures we have taken during 2020 in response to COVID-19 have strengthened and streamlined the Company's business model, we remain aware that uncertainty continues to exist in the macroeconomic environment given the ongoing challenges associated with the global pandemic. We will continue to remain proactive and vigilant in assessing how COVID-19 may impact our organization and remain committed to optimizing and building stability and resiliency into our business model to ensure we are able to drive industry-leading performance regardless of changing market conditions.

Consolidated AutoCanada Highlights

RECORD SETTING FOURTH QUARTER

As a result of the continued execution of our complete business model, along with the improvement in market outlook and demand during Q4 2020, AutoCanada delivered a record setting fourth quarter.

For the three-month period ended December 31, 2020:

• Revenue was $876.1 million, an increase of $67.0 million or 8.3%
• Total vehicles sold were 16,976, an increase of 383 units or 2.3%
• Used retail vehicles sold increased by 432 or 6.2%
• Net income (loss) for the period was $24.3 million (or $0.87 per basic share) versus $(16.8) million (or $(0.63) per basic share)
• Recovery of non-financial assets of $11.2 million was recognized during the three-months ended December 31, 2020 and impairment of non-financial assets of $(24.0) million was recognized during the three-months ended December 31, 2019
• Adjusted EBITDA increased by 92.1% to $40.5 million, an increase of $19.4 million
• COVID-19 related normalizing items in the quarter were offsetting: CEWS of $2.8 million, rent subsidy of $0.2 million were offset by new vehicle inventory write-down of $(1.8) million, one-time employee recognition payments of $(0.3) million, and operational incentive payments of $(0.9)
• Ending net indebtedness of $89.5 million reflected an increase of $8.1 million from the end of Q3 2020 and a decrease of $(68.4) million from the end of the prior year

Canadian Operations Highlights

OUTPERFORMED CANADIAN NEW RETAIL MARKET FOR EIGHTH CONSECUTIVE QUARTER

For the eighth consecutive quarter, we outperformed the Canadian market, as same store new retail unit sales increased by 0.7% as compared to the market decrease of (4.9)%, for brands represented by AutoCanada as reported by DesRosiers Automotive Consultants ("DesRosiers"), an outperformance of 5.6 percentage points ("ppts").

Our used vehicle segment was a key driver of the improved earnings in Q4 2020. Same store used vehicle gross profit percentage increased to 7.7% as compared to 6.4% in the prior year. Our used to new retail units ratio in the quarter increased to 0.93 from 0.84 in the prior year, and our used to new retail units ratio for the full year improved to 0.95 as compared to 0.78 for the prior year.

For the three-month period ended December 31, 2020:

• Revenue was $778.4 million, an increase of 11.5%
• Total retail vehicles sold were 13,940, an increase of 729 units or 5.5%
• Used retail unit sales increased by 705 or 11.7%
• Used to new retail units ratio increased to 0.93 from 0.84
• Trailing twelve month ratio improved to 0.95 at Q4 2020 as compared to 0.78 at Q4 2019
• Finance and insurance gross profit per retail unit average increased to $2,817, up 13.8% or $342 per unit
• Net income for the period was $25.4 million, up 325.1% from a net income of $6.0 million in 2019
• Recovery of non-financial assets of $11.2 million was recognized during the three-months ended December 31, 2020 and impairment of non-financial assets of $(5.8) million was recognized during the three-months ended December 31, 2019
• Adjusted EBITDA increased 77.3% to $39.2 million, an increase of $17.1 million 

U.S. Operations Highlights

ADJUSTED EBITDA OF $1.2 MILLION

Continued focus on cost management and profitability along with continued demand resulted in improved results for the U.S. platform, despite significant inventory shortages in the U.S. In addition, the U.S. Operations were particularly impacted by the stringent pandemic related restrictions imposed by both the State of Illinois and the City of Chicago. The prior year comparative period includes two franchises which ceased operations on November 11, 2019, while the current year period includes the acquisition of Autohaus of Peoria on October 29, 2020.

• Revenue was $97.7 million, a decrease of (11.9)%
• Retail unit sales decreased to 2,072 units, down (470) units or (18.5)%
• Net income (loss) for the period increased by $21.7 million to $(1.0) million, an improvement of 95.5% from $(22.8) million in 2019
• Impairment of non-financial assets of $(18.2) million was recognized during the three-months ended December 31, 2019
• Adjusted EBITDA was $1.2 million, an increase of $2.3 million from 2019

Same Store Metrics - Canadian Operations

SAME STORE USED RETAIL UNIT SALES GROWTH OF 7.7%

Same store new and used retail unit sales increased by 3.9% to 13,018 units; new retail units increased by 0.7% and used retail units increased by 7.7%. The increase of new retail units by 0.7% outperformed the market decrease of (4.9)% in the Canadian new vehicle market for the brands represented by AutoCanada, as reported by DesRosiers.

The continued optimization of the Company's complete business model is highlighted by the year-over-year improvement in gross profit across each individual business segment which collectively totaled $9.0 million, or 7.7%.

All same store metrics include only Canadian dealerships which have been owned for at least two full years since acquisition.

• Revenue increased to $696.2 million, an increase of 6.3%
• Gross profit increased by $9.0 million or 7.7%
• Used to new retail units ratio increased to 0.91 from 0.85
• New and used retail unit sales increased by 3.9% to 13,018 units
• Used retail unit sales increased by 7.7%, an increase of 445 units
• Finance and insurance gross profit per retail unit average increased to $2,783, up 12.8% or $316 per unit; gross profit increased to $36.2 million as compared to $30.9 million in the prior year, an increase of 17.2%
• Parts, service and collision repair gross profit decreased to $47.5 million, a decrease of (5.1)%, driven by the overall reduction in kilometres driven due to pandemic restrictions
• Parts, service and collision repair gross profit percentage increased to 55.8% as compared to 50.3% in the prior year, an increase of 5.5 ppts, driven by a combination of a change in product mix and various initiatives to improve margin retention

Financing and Investing Activities and Other Recent Developments

NET DEBT LEVERAGE IMPROVES TO 1.3X

Our focus has been and continues to be on preserving cash and managing liquidity.

As at December 31, 2020, based on cash and cash equivalents and availability on our Credit Facility, our liquidity was $212.6 million. In the quarter, net indebtedness increased by $8.1 million to $89.5 million. During Q4 2020, the acquisitions of Auto Bugatti, Autohaus of Peoria and Haldimand Motors accounted for a net cash outflow of $10.7 million, excluding assumed floorplan liability.

On December 1, 2020, the Company announced the establishment of the strategic Used Digital Retail Division.

COVID-19 Response

Actions Taken in Response to COVID-19

Since the outset of COVID-19, the Company has carefully followed the most current direction of government and related health agencies in our policies and procedures across our operations. We continue to implement stringent operating practices to ensure personal protection, cleanliness, distancing, overall employee and customer safety, work from home protocols wherever possible, halting all non-essential travel, and following established guidelines.

The Company continues to monitor local government orders regarding business operations to ensure that our operations comply with all applicable restrictions.

Across all our operations, AutoCanada will continue to safely support customers with their vehicle servicing and purchasing requirements, and customers are encouraged to contact their local dealership as needed.

We continue to be mindful of the potential impacts of COVID-19 over the coming months.

Financial Resilience Measures Taken

Our main priorities continue to be the management of our inventory and cash to ensure we remain adaptable and resilient through the coming quarters. The Company has taken measures to enhance financial resilience in response to the evolving market conditions due to COVID-19. These measures are designed to address immediate challenges, while reinforcing the balance sheet to ensure we are well-prepared to respond to market conditions given the uncertainty as to the duration of the pandemic.

Below is a snapshot update of the measures taken in Q1 2020 at the onset of the pandemic and the progress made to date. For a complete description of the measures taken, please see our Q3 2020 MD&A.

• Amended Credit Facility to introduce staged covenant relief thresholds through to Q2 2021
• Continuously adjusted employee head count to meet operational needs and adjusted pay plans to further bias to variable cost structure
• Deferred, reduced, or eliminated most discretionary and non-essential operational and administrative spending through to Q3 2020
• Reduced our capital spending to $21.0 million for 2020 from the approximate $29 million two-year average
• Suspended our dividend in Q2 2020, representing approximately $8 million cash savings for 2020; approximately $11 million in annualized cash savings
• Realized net proceeds of $9.2 million from the sale of three non-core properties
• Recognized CEWS of $2.8 million in Q4 2020 and $35.3 million in income for the year ended December 31, 2020
• Received a loan for U.S. dealerships of $5.4 million (USD) in Q2 2020 under the Paycheck Protection Program with opportunity for forgiveness; to date, the loan has not been recognized into income
• Restructured interest rate swap portfolio resulting in approximately $2.2 million in annualized cash savings in 2020

COVID-19 Operating Impacts to Business Objectives and Strategy

We have created a detailed plan to ensure we successfully weather the pandemic, while also improving and strengthening our business model to best address changing market conditions. This includes actively managing headcount, continued focus on used retail sales, leveraging our Business Development Centre ("BDC") to drive parts and service, and ensuring pay plan programs align with changing market conditions to drive greater consistency across platforms and better alignment with operating targets.

Management is actively assessing what the "new normal" will be. We will continue to respond according to market conditions as they evolve.

Combined with the measures taken as identified above, and the Company's comprehensive business model, management believes the Company to be well-positioned to operate within the COVID-19 environment. The Company intends to emerge from this unprecedented period of time as a stable and more resilient operating entity.

The following table summarizes the Company's results for the quarter and year ended December 31, 2020:

	Three Months Ended December 31				Year Ended December 31
Consolidated Operational Data	2020	2019	% Change		2020	2019	% Change
Revenue	876,121	809,103	8.3%		3,329,494	3,476,111	(4.2)%
Gross profit	152,737	139,676	9.4%		547,326	570,495	(4.1)%
Gross profit %	17.4%	17.3%	0.1%		16.4%	16.4%	—%
Operating expenses	119,442	125,140	(4.6)%		461,663	499,768	(7.6)%
Operating (loss) profit	46,664	(6,597)	807.4%		70,212	42,474	65.3%
Profit (loss) for the period	24,320	(16,786)	244.9%		(6,623)	(27,073)	75.5%
Basic net (loss) per share attributable to AutoCanada shareholders	0.87	(0.63)	238.1%		(0.27)	(1.03)	73.8%
Adjusted EBITDA ^1	40,472	21,065	92.1%		112,093	97,203	15.3%
New retail vehicles sold (units)	8,623	8,796	(2.0)%		33,188	37,687	(11.9)%
New fleet vehicles sold (units)	964	840	14.8%		2,923	5,547	(47.3)%
Total new vehicles sold (units)	9,587	9,636	(0.5)%		36,111	43,234	(16.5)%
Used retail vehicles sold (units)	7,389	6,957	6.2%		29,862	28,107	6.2%
Total vehicles sold	16,976	16,593	2.3%		65,973	71,341	(7.5)%
Same store new retail vehicles sold (units)	6,804	6,758	0.7%		26,694	29,381	(9.1)%
Same store new fleet vehicles sold (units)	927	793	16.9%		2,801	5,104	(45.1)%
Same store used retail vehicles sold (units)	6,214	5,769	7.7%		25,304	23,236	8.9%
Same store total vehicles sold	13,945	13,320	4.7%		54,799	57,721	(5.1)%
Same store revenue	696,150	655,009	6.3%		2,685,130	2,837,746	(5.4)%
Same store gross profit	124,739	115,782	7.7%		459,932	477,481	(3.7)%
Same store gross profit %	17.9%	17.7%	0.2%		17.1%	16.8%	0.3%

See the Company's Management's Discussion and Analysis for the quarter ended December 31, 2020 for complete footnote disclosures.

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.

	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019
Income Statement Data ^4
New vehicles	466,468	544,415	381,427	341,582	430,102	555,843	554,686	398,983
Used vehicles	257,301	309,193	215,032	229,355	217,063	262,297	223,258	188,619
Parts, service and collision repair	105,362	111,739	90,417	102,453	120,564	116,439	125,822	116,902
Finance, insurance and other	46,990	51,753	40,571	35,436	41,374	47,291	42,001	34,867
Revenue	876,121	1,017,100	727,447	708,826	809,103	981,870	945,767	739,371
New vehicles	31,199	42,230	10,634	24,267	29,570	36,755	36,645	27,527
Used vehicles	19,787	29,819	4,224	10,173	12,676	11,731	13,936	11,112
Parts, service and collision repair	58,109	59,056	45,836	49,969	58,763	59,641	64,518	55,744
Finance, insurance and other	43,642	48,307	37,185	32,889	38,667	42,627	38,267	32,316
Gross Profit	152,737	179,412	97,879	117,298	139,676	150,754	153,366	126,699
Gross profit %	17.4%	17.6%	13.5%	16.5%	17.3%	15.4%	16.2%	17.1%
Operating expenses ^5, 7	119,442	125,785	99,736	116,700	125,140	124,772	128,190	121,666
Operating expenses as a % of gross profit ^5, 7	78.2%	70.1%	101.9%	99.5%	89.6%	82.8%	83.6%	96.0%
Operating (loss) profit ^5, 7	46,664	56,884	(4,388)	(28,948)	(6,597)	16,695	18,905	13,471
Impairment (recovery) of non-financial assets ^5	(11,248)	—	3,910	31,545	24,001	—	12,574	—
Net (loss) income ^5, 7	24,320	35,962	(20,052)	(46,853)	(16,786)	(4,104)	(3,512)	(2,671)
Basic net (loss) income per share attributable to AutoCanada shareholders ^5	0.87	1.29	(0.72)	(1.70)	(0.63)	(0.15)	(0.15)	(0.10)
Diluted net (loss) income per share attributable to AutoCanada shareholders ^5	0.84	1.23	(0.72)	(1.70)	(0.63)	(0.15)	(0.15)	(0.10)
Dividends declared per share	—	—	—	0.10	0.10	0.10	0.10	0.10
Adjusted EBITDA ^2, 5, 6, 7	40,472	61,054	4,828	5,739	21,065	32,489	32,100	11,549
Free cash flow ^2, 5, 6, 7	19,240	53,444	52,557	6,155	65,825	54,788	(21,781)	1,034
Operating Data ^4
New retail vehicles sold ^3	8,623	10,750	7,526	6,289	8,796	10,419	10,310	8,162
New fleet vehicles sold ^3	964	582	340	1,037	840	1,849	1,794	1,064
Total new vehicles sold ^3	9,587	11,332	7,866	7,326	9,636	12,268	12,104	9,226
Used retail vehicles sold ^3	7,389	8,836	7,228	6,409	6,957	7,384	7,249	6,517
Total vehicles sold ^3	16,976	20,168	15,094	13,735	16,593	19,652	19,353	15,743
# of service and collision repair orders completed ^3, 8	203,086	195,004	172,956	185,452	232,227	226,660	249,867	219,823
# of dealerships at period end	64	62	63	63	63	64	65	66
# of same store dealerships ^1	47	47	48	48	47	47	47	47
# of service bays at period end	1,098	1,039	1,044	1,044	1,047	1,086	1,097	1,113
Same stores revenue growth ^1	6.3%	(1.1)%	(22.4)%	0.8%	8.7%	20.4%	4.7%	(1.6)%
Same stores gross profit growth ^1	7.7%	17.1%	(33.9)%	(2.1)%	11.8%	13.9%	6.8%	1.9%

See the Company's Management's Discussion and Analysis for the quarter ended December 31, 2020 for complete footnote disclosures.

The following tables summarize the results for the quarter and year ended December 31, 2020 on a same store basis by revenue source and compares these results to the same period in 2019.

Same Store Revenue and Vehicles Sold

	Three Months Ended December 31				Year Ended December 31
	2020	2019	% Change		2020	2019	% Change
Revenue source
New vehicles - retail	341,064	311,311	9.6%		1,303,825	1,346,123	(3.1)%
New vehicles - fleet	38,896	29,363	32.5%		118,280	205,605	(42.5)%
Total new vehicles	379,960	340,674	11.5%		1,422,105	1,551,728	(8.4)%
Used vehicles - retail	162,421	142,800	13.7%		633,810	576,261	10.0%
Used vehicles - wholesale	29,393	38,468	(23.6)%		140,490	180,682	(22.2)%
Total used vehicles	191,814	181,268	5.8%		774,300	756,943	2.3%
Parts, service and collision repair	85,138	99,575	(14.5)%		339,591	391,272	(13.2)%
Finance, insurance and other	39,238	33,492	17.2%		149,134	137,803	8.2%
Total	696,150	655,009	6.3%		2,685,130	2,837,746	(5.4)%
New retail vehicles sold (units)	6,804	6,758	0.7%		26,694	29,381	(9.1)%
New fleet vehicles sold (units)	927	793	16.9%		2,801	5,104	(45.1)%
Total new vehicles sold (units)	7,731	7,551	2.4%		29,495	34,485	(14.5)%
Used retail vehicles sold (units)	6,214	5,769	7.7%		25,304	23,236	8.9%
Total vehicles sold (units)	13,945	13,320	4.7%		54,799	57,721	(5.1)%
Total vehicles retailed (units)	13,018	12,527	3.9%		51,998	52,617	(1.2)%

Same Store Gross Profit and Profit Percentage

	Three Months Ended December 31
	Gross Profit				Gross Profit %
	2020	2019	% Change		2020	2019
Revenue source
New vehicles - retail	25,836	24,780	4.3%		7.6%	8.0%
New vehicles - fleet	364	(1,556)	(123.4)%		0.9%	(5.3)%
Total new vehicles	26,200	23,224	12.8%		6.9%	6.8%
Used vehicles - retail	13,559	11,666	16.2%		8.3%	8.2%
Used vehicles - wholesale	1,249	(92)	(1,457.6)%		4.2%	(0.2)%
Total used vehicles	14,808	11,574	27.9%		7.7%	6.4%
Parts, service and collision repair	47,496	50,068	(5.1)%		55.8%	50.3%
Finance, insurance and other	36,235	30,916	17.2%		92.3%	92.3%
Total	124,739	115,782	7.7%		17.9%	17.7%

	Year Ended December 31
	Gross Profit				Gross Profit %
	2020	2019	% Change		2020	2019
Revenue source
New vehicles - retail	92,088	104,340	(11.7)%		7.1%	7.8%
New vehicles - fleet	859	2,122	(59.5)%		0.7%	1.0%
Total new vehicles	92,947	106,462	(12.7)%		6.5%	6.9%
Used vehicles - retail	46,671	45,506	2.6%		7.4%	7.9%
Used vehicles - wholesale	6,226	3,789	64.3%		4.4%	2.1%
Total used vehicles	52,897	49,295	7.3%		6.8%	6.5%
Parts, service and collision repair	176,686	196,651	(10.2)%		52.0%	50.3%
Finance, insurance and other	137,402	125,073	9.9%		92.1%	90.8%
Total	459,932	477,481	(3.7)%		17.1%	16.8%

MD&A and Financial Statements
Information included in this press release is a summary of results. It should be read in conjunction with AutoCanada's Consolidated Financial Statements and Management's Discussion and Analysis for the quarter ended December 31, 2020, which can be found on the Company's website at www.autocan.ca or on www.sedar.com.

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. The following "Non-GAAP Measures" are defined in the annual MD&A: Adjusted EBITDA; Free Cash Flow; Net Indebtedness and Lease Adjusted Leverage Ratio.

Conference Call

A conference call to discuss the results for the three months ended December 31, 2020 will be held on March 3, 2021 at 9:00am Mountain (11:00am Eastern). To participate in the conference call, please dial 1.888.231.8191 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://www.autocan.ca/investors/q42020-presentation/

About AutoCanada

AutoCanada is a leading North American multi-location automobile dealership group currently operating 66 franchised dealerships, comprised of 27 brands, in eight provinces in Canada as well as a group in Illinois, USA. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, BMW, MINI, Volvo, Toyota, Lincoln, Honda and Porsche branded vehicles. In 2020, our dealerships sold approximately 66,000 vehicles and processed over 756,000 service and collision repair orders in our 1,098 service bays generating revenue in excess of $3 billion.

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

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 of 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) 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 press release.

The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at 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.

Additional Information

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

SOURCE AutoCanada Inc.

Mike Borys, Chief Financial Officer, Phone: [phone], Email: [email protected]

Related Links

http://www.autocan.ca/