AUTOCANADA REPORTS RECORD FOURTH QUARTER RESULTS

• Revenue was $1,195.8 million as compared to $876.1 million in the prior year, an increase of 36.5% and the highest fourth quarter revenue reported in the Company's history
• Net income for the period was $69.4 million versus $24.3 million in the prior year and includes recovery of non-financial assets of $39.8 million in Q4 2021 and $11.2 million in Q4 2020
• Net income margin¹ was 5.8% versus 2.8% in the prior year, an increase of 3.0 percentage points
• Adjusted EBITDA² was $65.9 million versus $40.5 million in the prior year, an increase of 62.8%
• Adjusted EBITDA margin² was 5.5% versus 4.6% in the prior year, an increase of 0.9 percentage points
• Diluted earnings per share was $2.38, an increase of $1.57 from $0.81 in the prior year.
• Indebtedness of $285.9 million at the end of Q4 2021 compares to $197.2 million at the end of Q4 2020
• Net indebtedness² of $212.7 million at the end of Q4 2021 compares to $89.5 million at the end of Q4 2020

EDMONTON, AB, March 2, 2022 /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, 2021.

"Our operations delivered yet another record fourth quarter, reflecting the fundamental strength and resiliency of our business model," said Paul Antony, Executive Chairman of AutoCanada.  "Continued strong used vehicle sales and F&I business, proactive inventory management as well as outstanding performance in our U.S. operations were key drivers of our results."

"We also significantly advanced our acquisition strategy in the fourth quarter with the recent Autopoint transaction, providing strong brand and geographic diversification, and adding considerable size, scale and scope to AutoCanada's existing platform in a growing market."

"Looking ahead in 2022, we will continue to build on our positive momentum and focus on strategic growth initiatives to drive industry-leading performance and enhance shareholder returns, regardless of changing market conditions. We remain well positioned to continue to execute on our acquisition strategy in the coming quarters with several dealerships representing over $100 million in annual revenue currently being evaluated."

In addition, AutoCanada announced today that Michael Rawluk, President of Canadian Operations and Director, is departing the Company for personal reasons.

"I would like to thank Michael in his role as President of Canadian Operations, for his dedicated service and substantial contributions to AutoCanada since 2018.  He has been instrumental in stabilizing our Canadian dealership platform, strengthening the team of talented professionals running the business day-to-day and successfully positioning us to enter our next stage of growth. We wish him well in his future endeavors," said Paul Antony, Executive Chairman. "While the team we've put in place over the last few years is exceptional and we do not anticipate any impact on the Company's strong momentum heading into 2022, we have been actively in dialogue with a number of candidates for the role. We expect to make an announcement in the coming weeks, given the advanced stage of these discussions."

"The AutoCanada team has worked tirelessly over the last three and a half years and I am very proud of all that we have accomplished," said Michael Rawluk.  "AutoCanada's future is bright and I am very confident in the team as they embark on the next chapter of the Company's growth story."

2021 Fourth Quarter Key Highlights and Recent Developments

All comparisons presented below are between the three-month period ended December 31, 2021 and the three-month period ended December 31, 2020, unless otherwise indicated.

Executive Overview

The momentum generated by the Company's previous three quarters carried over into the record-setting fourth quarter of 2021 as revenue reached $1,195.8 million as compared to $876.1 million in the prior year, an increase of 36.5%. Record Q4 2021 results were driven by the strong performance of our used vehicle and finance and insurance ("F&I") business operations, and the material improvements from our U.S. Operations.

Net income for the period was $69.4 million, as compared to $24.3 million in Q4 2020. Diluted earnings per share was $2.38, an increase of $1.57 from $0.81 in the prior year.

Adjusted EBITDA² for the period was $65.9 million as compared to $40.5 million reported in Q4 2020, an improvement of 62.8%. Adjusted EBITDA margin² was 5.5% as compared to 4.6% in the prior year, an increase of 0.9  percentage points ("ppts").

Gross profit increased by $75.8 million to $228.5 million, an increase of 49.6%, as compared to prior year. This increase was largely driven by the increases of $18.3 million from used vehicles and $20.2 million from F&I. In addition, used retail vehicles¹ sales increased by 4,504 units, up 61.0%, to 11,893, which contributed to the consolidated used to new retail units ratio¹ moving to 1.45 from 0.86. F&I gross profit per retail unit average¹ increased to $3,177, up 16.6% or $451 per unit. Gross profit percentage¹ of 19.1% was a result of strong performance across all areas of the business and compares to 17.4% in the prior year.

Contributing to our fourth quarter, our U.S. Operations continued to demonstrate strong growth and performance. Actions taken by management previously, including the strategic build-up of used vehicle inventory, the creation of a dedicated used vehicle team, top-grading dealership management, expanding teams across all levels of the business, and the execution of operational best practices, contributed to $39.2 million of gross profit and gross profit margin of 19.9%. The increase in gross profit of $22.6 million, an increase of 136% as compared to prior year, was driven by improvements across all aspects of the business.

Proactive inventory management for both new and used vehicles continued to be a key driver to the Company's success in delivering both strong revenue and retail margin growth across all our business operations in the fourth quarter. We continue to manage our new vehicle inventory as the chip shortage remains an issue, particularly impacting new vehicle inventory supply. While we are gradually seeing improvements in both available new vehicle inventory and allocations, we are not expecting a return to "normalcy" in inventory levels until late 2022 or early 2023. Compensating for reduced new vehicle inventory supply, we doubled our used vehicle inventory position to $441.7 million as at December 31, 2021 as compared to $218.8 million in the prior year. Our strong inventory position is expected to meet market demand and maximize profitability as we enter the prime selling months at the tail end of Q1 2022.

Net indebtedness² increased by $182.9 million from September 30, 2021 and increased by $123.2 million from December 31, 2020 to $212.7 million at the end of Q4 2021. The increase from Q3 2021 includes debt incurred in connection with the acquisitions of Airdrie Autobody Ltd., a collision centre in Canada, Crystal Lake Chrysler Dodge Jeep Ram Inc., a Stellantis dealership in the U.S., the 11 dealerships from the Autopoint Group, and the purchase of dealership real estate under development in Maple Ridge, BC, which represented a total cash outflow of approximately $181 million during the quarter. The Crystal Lake and Autopoint Group acquisitions added brands that we did not have in the respective operations groups, including Stellantis in our U.S. Operations and Honda, Acura, and Kia in our Canadian Operations. Free cash flow² on a trailing twelve month ("TTM") basis was $107.2 million at Q4 2021 as compared to $131.4 million in Q4 2020; the decline in free cash flow² between years was driven primarily by reduced government assistance in 2021, increased cash taxes, stock based compensation related cash payments, and changes in working capital. Additionally, our net indebtedness leverage ratio² of 1.0x remained well below our target range at the end of Q4 2021, as compared to 1.3x in Q4 2020.

Had all of the acquisitions completed in fiscal 2021 occurred at January 1, 2021, consolidated pro forma net income would have been $174.8 million compared to consolidated net income $167.2 million for the year ended December 31, 2021. Pro forma normalized adjusted EBITDA² was $266.4 million as compared to normalized adjusted EBITDA² of $240.4 million for the year ended December 31, 2021.

The Company remains well-positioned to continue to execute on its acquisition strategy in the coming quarters. We continue to develop a transaction pipeline with a number of dealerships currently being evaluated. We currently have approximately $100 million in annual revenue under signed letters of intent ("LOI's") and purchase agreements.

Our performance, both in Canada and U.S. Operations, continues our trend of sustainable improvement and demonstrates the efficacy of our complete business model and strategic initiatives. We remain aware that uncertainty continues to exist in the macroeconomic environment given the ongoing challenges associated with the global pandemic. Uncertainties may include potential economic recessions or downturns, continued disruptions to the global automotive manufacturing supply chain, and other general economic conditions resulting in reduced demand for vehicle sales and service. 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 condition.

¹ This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". See Section 15. NON-GAAP AND OTHER FINANCIAL MEASURES of the Company's Management's Discussion & Analysis (MD&A) for the year ended December 31, 2021 for further information regarding the composition of these measures.

² See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.

Consolidated AutoCanada Highlights

RECORD SETTING FOURTH QUARTER

As a result of the execution of our complete business model, AutoCanada delivered a record setting fourth quarter.

For the three-month period ended December 31, 2021:

• Revenue was $1,195.8 million, an increase of $319.7 million or 36.5%
• Total vehicles¹ sold were 20,296, an increase of 3,320 units or 19.6%
• Used retail vehicles¹ sold increased by 4,504 or 61.0%
• Net income for the period was $69.4 million (or $2.38 per diluted share) versus $24.3 million (or $0.81 per diluted share)
• Recovery of non-financial assets of $39.8 million was recognized in Q4 2021 and $11.2 million was recognized in Q4 2020
• Loss on redemption liabilities of $(14.1) million was recognized in Q4 2021 and a gain of $2.1 million was recognized in Q4 2020
• Unrealized fair value gain on embedded derivative of $24.8 million was recognized in Q4 2021
• Adjusted EBITDA² increased by 62.8% to $65.9 million, an increase of $25.4 million
• Net indebtedness² of $212.7 million reflected an increase of $182.9 million from the end of Q3 2021 and an increase of $123.2 million from the end of the prior year

Canadian Operations Highlights

USED RETAIL UNIT¹ SALES INCREASED BY 3,002 UNITS OR 44.6%

We outperformed the Canadian market, as same store new retail unit¹ sales decreased by (11.6)% as compared to the market decrease of (11.9)%, for same store brands represented by AutoCanada as reported by DesRosiers Automotive Consultants ("DesRosiers"), an outperformance of 0.3 ppts.

Our used vehicle and F&I segments were key drivers of the record earnings in Q4 2021. Used vehicle gross profit percentage¹ increased to 7.8% as compared to 7.4% in the prior year. F&I gross profit per retail unit average¹ increased to $3,130, up 11.1% or $313 per unit.

Current period results include the acquisitions of PG Klassic Autobody collision centre in Q2 2021, Mark Wilson's Better Used Cars and Autolux MB Collision in Q3 2021, Airdrie Autobody Ltd. collision centre on October 1, 2021 and the Autopoint Group on December 1, 2021. Unless stated otherwise, all results for acquired businesses are included in all Canadian references in the MD&A.

For the three-month period ended December 31, 2021:

• Revenue was $998.8 million, an increase of 28.3%
• Used retail vehicles¹ sold increased by 3,002 or 44.6%
• Average TTM Canadian used retail unit sales per dealership per month¹, excluding Used Digital Retail Division dealerships, improved to 52, as compared to 47 in the prior year
• Used to new retail units ratio¹ increased to 1.45 from 0.93
• TTM used to new retail ratio¹ improved to 1.43 at Q4 2021 as compared to 0.95 at Q4 2020
• F&I gross profit per retail unit average¹ increased to $3,130, up 11.1% or $313 per unit
• Net income for the period was $62.3 million, up 145.5% from a net income of $25.4 million in 2020
• Adjusted EBITDA² increased 40.6% to $55.1 million, an increase of $15.9 million
• Adjusted EBITDA margin² was 5.5% as compared to 5.0% in the prior year, an increase of 0.5 ppts

¹ This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". See Section 15. NON-GAAP AND OTHER FINANCIAL MEASURES of the Company's Management's Discussion & Analysis (MD&A) for the year ended December 31, 2021 for further information regarding the composition of these measures.

² See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.

U.S. Operations Highlights

REVENUE INCREASED BY  102% TO $197.0 MILLION

As a result of the U.S. management team transition in late Q1 2021, U.S. Operations have demonstrated continued and sustainable improvements due to a fundamental shift in the operating and sales culture of the dealerships. Management's actions have led to improved metrics on multiple fronts and set a fourth quarter record with a total gross profit percentage of 19.9%. Improvements in U.S. Operations also included a 76.2% increase in retail unit¹ sales and an increase in F&I gross profit per retail unit average¹ to $3,387 per unit, up 60.5% or $1,277 per unit.

Current period results include the acquisition of Crystal Lake Chrysler Dodge Jeep Ram Inc. on November 4, 2021.

• Revenue was $197.0 million, an increase of 102%
• Used retail vehicles¹ sold increased by 1,502 units or 226%
• Net income (loss) for the period increased by $8.2 million to $7.1 million, from $(1.0) million in 2020
• Adjusted EBITDA² was $10.7 million, an increase of $9.5 million from 2020

Same Store Metrics - Canadian Operations

F&I GROSS PROFIT PER RETAIL UNIT AVERAGE INCREASED TO $3,312, UP 18.2% OR $509 PER UNIT

We outperformed the Canada market by 0.3 ppts as same store new retail units¹ decreased by (11.6)% as compared to the market decrease of (11.9)%, for same store brands represented by AutoCanada as reported by DesRosiers. Same store used retail units¹ increased by 1,523, an increase of 22.6% as compared to prior year. The continued optimization of the Company's complete business model is highlighted by the year-over-year 29.4% improvement in gross profit across each individual business segment which collectively totaled $172.7 million.

The Company believes that it takes two years for an acquired dealership to achieve normal operating results. All same store metrics include only Canadian dealerships which have been owned for at least two full years since acquisition to support meaningful analysis. RightRide locations are included in the same stores metrics as they are an extension of the Project 50 initiative to support Canadian dealerships in reaching credit challenged customers.

• Revenue increased to $852.9 million, an increase of 14.1%
• Gross profit increased by $39.2 million or 29.4%
• Used to new retail units ratio¹ increased to 1.29 from 0.93
• Used retail unit¹ sales increased by 22.6%, an increase of 1,523 units
• Average annual same store used retail unit¹ sales per dealership per month reached 63, as compared to 46 in the prior year
• For the thirteenth consecutive quarter of year-over-year growth, F&I gross profit per retail unit average¹ increased to $3,312, up 18.2% or $509 per unit; gross profit increased to $48.4 million as compared to $39.1 million in the prior year, an increase of 24.0%
• Parts, service and collision repair ("PS&CR") gross profit increased to $60.2 million, an increase of 21.1%.
• PS&CR repair gross profit percentage increased to 56.0% as compared to 55.0% in the prior year

¹ This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". See Section 15. NON-GAAP AND OTHER FINANCIAL MEASURES of the Company's Management's Discussion & Analysis (MD&A) for the year ended December 31, 2021 for further information regarding the composition of these measures.

² See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.

Financing and Investing Activities and Other Recent Developments

COMPLETED ACQUISITION OF THE AUTOPOINT GROUP, ISSUED $350 MILLION SENIOR UNSECURED NOTES

Net indebtedness² of $212.7 million resulted in a net indebtedness leverage ratio² of 1.0x. Acquisition expenditures in the quarter were approximately $181 million. Financing and investing activities included the following:

• On October 1, 2021, the Company acquired 100% of the shares in Airdrie Autobody Ltd., a collision centre located in Airdrie, Alberta.
• On November 4, 2021, the Company acquired certain franchise rights, inventories and assets to be used in the operations of Crystal Lake Chrysler Dodge Jeep Ram Inc., a Stellantis dealership located in Crystal Lake, Illinois and the related dealership real estate.
• On December 1, 2021 the Company acquired substantially all of the assets of eleven dealerships from the Autopoint Group located in Ontario.
• On December 17, 2021, the Company acquired the dealership real estate under development in Maple Ridge, British Columbia.
• On December 20, 2021, the Company received approval from the TSX to commence a Normal Course Issuer Bid. As at March 2, 2022, the Company repurchased and cancelled 542,401 shares under the Normal Course Issuer Bid for $20 million.
• On January 12, 2022, S&P Global Ratings ("S&P") issued a research update and raised both the issuer credit rating and the Company's senior unsecured notes to 'B+'.
• On February 7, 2022, amended and extended our existing credit facility for total aggregate bank facilities of $1.3 billion, with a maturity date of April 14, 2025, and included the addition of The Toronto-Dominion Bank to its existing syndicate of lenders which includes The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Bank of Montreal, HSBC Bank Canada, and ATB Financial.
• On February 7, 2022, issued $350 million of Senior Unsecured Notes at 5.75%, due February 7, 2029, with the proceeds used to fund the redemption of the outstanding $250 million 8.75% Senior Unsecured Notes due February 11, 2025, to reduce the outstanding balance under its syndicated credit facility and for general corporate purposes including acquisitions.

Fourth Quarter Financial Information

The following table summarizes the Company's results for the quarter and year ended December 31, 2021:

	Three Months Ended December 31				Year Ended December 31
Consolidated Operational Data	2021	2020	% Change		2021	2020	% Change
Revenue	1,195,782	876,121	36.5%		4,653,415	3,329,494	39.8%
Gross profit	228,514	152,737	49.6%		834,183	547,326	52.4%
Gross profit %	19.1%	17.4%	1.7 ppts		17.9%	16.4%	1.5 ppts
Operating expenses	170,008	119,442	42.3%		612,609	461,663	32.7%
Operating profit	99,410	46,664	113.0%		270,068	70,212	284.6%
Net income (loss) for the period	69,398	24,320	185.4%		167,199	(6,623)	2624.5%
Basic net income (loss) per share attributable to AutoCanada shareholders	2.54	0.87	192.0%		5.98	(0.27)	2314.8%
Diluted net income (loss) per share attributable to AutoCanada shareholders	2.38	0.81	193.8%		5.60	(0.27)	2174.1%
Adjusted EBITDA ^2	65,873	40,472	62.8%		251,863	112,093	124.7%
New retail vehicles^1 sold (units)	8,204	8,623	(4.9)%		35,799	33,188	7.9%
New fleet vehicles^1 sold (units)	199	964	(79.4)%		1,872	2,923	(36.0)%
Total new vehicles^1 sold (units)	8,403	9,587	(12.4)%		37,671	36,111	4.3%
Used retail vehicles^1 sold (units)	11,893	7,389	61.0%		48,729	29,862	63.2%
Total vehicles^1 sold	20,296	16,976	19.6%		86,400	65,973	31.0%
Same store new retail vehicles^1 sold (units)	6,380	7,215	(11.6)%		28,762	28,277	1.7%
Same store new fleet vehicles^1 sold (units)	192	963	(80.1)%		1,864	2,919	(36.1)%
Same store used retail vehicles^1 sold (units)	8,248	6,725	22.6%		37,035	26,935	37.5%
Same store total vehicles^1 sold	14,820	14,903	(0.6)%		67,661	58,131	16.4%
Same store^1 revenue	852,913	747,707	14.1%		3,598,793	2,876,957	25.1%
Same store^1 gross profit	172,663	133,429	29.4%		675,771	486,961	38.8%
Same store^1 gross profit %	20.2%	17.8%	2.4%		18.8%	16.9%	1.9%

¹ This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". See Section 15. NON-GAAP AND OTHER FINANCIAL MEASURES of the Company's Management's Discussion & Analysis (MD&A) for the year ended December 31, 2021 for further information regarding the composition of these measures.

² See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.

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.

	MD&A Footnote Reference^3	Q4 2021	Q3 2021 REVISED	Q2 2021 REVISED	Q1 2021 REVISED	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Income Statement Data	4
New vehicles^4	7	467,085	498,142	547,593	451,061	466,468	544,415	381,427	341,582
Used vehicles^4	7	524,043	518,791	539,785	354,922	257,301	309,193	215,032	229,355
Parts, service and collision repair^4	7	136,800	116,953	122,459	108,427	105,362	111,739	90,417	102,453
Finance, insurance and other^4	7	67,854	72,868	71,218	55,414	46,990	51,753	40,571	35,436
Revenue		1,195,782	1,206,754	1,281,055	969,824	876,121	1,017,100	727,447	708,826
New vehicles^4	7	50,632	46,525	44,619	34,639	31,199	42,230	10,634	24,267
Used vehicles^4	7	38,118	39,669	40,269	23,206	19,787	29,819	4,224	10,173
Parts, service and collision repair^4	7	75,917	64,748	68,115	57,874	58,109	59,056	45,836	49,969
Finance, insurance and other^4	7	63,847	69,250	64,838	51,917	43,642	48,307	37,185	32,889
Gross Profit		228,514	220,192	217,841	167,636	152,737	179,412	97,879	117,298
Gross profit %		19.1%	18.2%	17.0%	17.3%	17.4%	17.6%	13.5%	16.5%
Operating expenses		170,008	159,880	154,773	127,948	119,442	125,785	99,736	116,700
Operating expenses as a % of gross profit		74.4%	72.6%	71.0%	76.3%	78.2%	70.1%	101.9%	99.5%
Operating profit (loss)		99,410	62,841	66,153	41,664	46,664	56,884	(4,388)	(28,948)
(Recoveries) impairment of non-financial assets		(39,846)	—	—	—	(11,248)	—	3,910	31,545
Net income (loss)		69,398	38,769	37,698	21,334	24,320	35,962	(20,052)	(46,853)
Basic net income (loss) per share attributable to AutoCanada shareholders		2.54	1.37	1.33	0.77	0.87	1.29	(0.72)	(1.70)
Diluted net income (loss) per share attributable to AutoCanada shareholders		2.38	1.27	1.23	0.71	0.81	1.23	(0.72)	(1.70)
Dividends declared per share		—	—	—	—	—	—	—	0.10
Adjusted EBITDA ^2	2	65,873	68,265	70,491	47,234	40,472	61,054	4,828	5,739
Free cash flow ^2	2	7,603	12,372	67,803	19,391	19,240	53,444	52,557	6,155
Operating Data	4
New retail vehicles^1 sold	3	8,204	9,255	10,107	8,233	8,623	10,750	7,526	6,289
New fleet vehicles^1 sold	3	199	358	575	740	964	582	340	1,037
Total new vehicles^1 sold	3	8,403	9,613	10,682	8,973	9,587	11,332	7,866	7,326
Used retail vehicles^1 sold	3	11,893	13,831	13,271	9,734	7,389	8,836	7,228	6,409
Total vehicles sold^1	3	20,296	23,444	23,953	18,707	16,976	20,168	15,094	13,735
# of service and collision repair orders completed	3, 5	232,373	199,870	214,149	182,869	203,086	195,004	172,956	185,452
# of dealerships at period end	6	80	68	67	67	67	62	63	63
# of same store dealerships	1	49	49	49	49	47	47	48	48
# of service bays at period end		1,303	1,108	1,098	1,098	1,098	1,039	1,044	1,044
Same stores^1 revenue growth	1	14.1%	15.0%	54.2%	27.8%	6.3%	(1.1)%	(22.4)%	0.8%
Same stores^1 gross profit    growth	1	29.4%	18.6%	102.5%	35.0%	7.7%	17.1%	(33.9)%	(2.1)%

¹ This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". See Section 15 of the Company's MD&A for   the year ended December 31, 2021 for further information regarding the composition of these measures.

² See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.

³ See the Company's MD&A for the quarter and year ended December 31, 2021 for complete footnote disclosures.

⁴ In Q4 2021, it was determined there were Revenues and Cost of sales accounts incorrectly classified between revenue streams in the first three quarters of 2021 within the U.S. Operations segment. As a result, the classification of these accounts has been corrected and we have revised the Q1, Q2, and Q3 2021 amounts. This reclassification had no impact on total gross profit.

The following tables summarize the results for the quarter and year ended December 31, 2021 on a same store basis by revenue source and compares these results to the same period in 2020.

Same Store Revenue and Vehicles Sold¹

	Three Months Ended December 31				Year Ended December 31
	2021	2020	% Change		2021	2020	% Change
Revenue source
New vehicles - retail	359,400	367,151	(2.1)%		1,533,513	1,406,109	9.1%
New vehicles - fleet	11,958	40,203	(70.3)%		91,826	122,806	(25.2)%
Total new vehicles	371,358	407,354	(8.8)%		1,625,339	1,528,915	6.3%
Used vehicles - retail	267,151	176,013	51.8%		1,110,137	678,742	63.6%
Used vehicles - wholesale	54,796	31,683	73.0%		241,861	149,608	61.7%
Total used vehicles	321,947	207,696	55.0%		1,351,998	828,350	63.2%
Parts, service and collision repair	107,491	90,496	18.8%		399,918	360,197	11.0%
Finance, insurance and other	52,117	42,161	23.6%		221,538	159,495	38.9%
Total	852,913	747,707	14.1%		3,598,793	2,876,957	25.1%
New retail vehicles sold (units)	6,380	7,215	(11.6)%		28,762	28,277	1.7%
New fleet vehicles sold (units)	192	963	(80.1)%		1,864	2,919	(36.1)%
Total new vehicles sold (units)	6,572	8,178	(19.6)%		30,626	31,196	(1.8)%
Used retail vehicles sold (units)	8,248	6,725	22.6%		37,035	26,935	37.5%
Total vehicles sold (units)	14,820	14,903	(0.6)%		67,661	58,131	16.4%
Total vehicles retailed (units)	14,628	13,940	4.9%		65,797	55,212	19.2%

Same Store Gross Profit and Profit Percentage¹

	Three Months Ended December 31
	Gross Profit				Gross Profit %
	2021	2020	% Change		2021	2020
Revenue source
New vehicles - retail	35,684	28,426	25.5%		9.9%	7.7%
New vehicles - fleet	247	406	(39.2)%		2.1%	1.0%
Total new vehicles	35,931	28,832	24.6%		9.7%	7.1%
Used vehicles - retail	26,079	14,370	81.5%		9.8%	8.2%
Used vehicles - wholesale	1,972	1,393	41.6%		3.6%	4.4%
Total used vehicles	28,051	15,763	78.0%		8.7%	7.6%
Parts, service and collision repair	60,240	49,762	21.1%		56.0%	55.0%
Finance, insurance and other	48,441	39,072	24.0%		92.9%	92.7%
Total	172,663	133,429	29.4%		20.2%	17.8%

	Year Ended December 31
	Gross Profit				Gross Profit %
	2021	2020	% Change		2021	2020
Revenue source
New vehicles - retail	140,962	103,062	36.8%		9.2%	7.3%
New vehicles - fleet	(510)	1,015	(150.2)%		(0.6)%	0.8%
Total new vehicles	140,452	104,077	35.0%		8.6%	6.8%
Used vehicles - retail	94,767	43,581	117.5%		8.5%	6.4%
Used vehicles - wholesale	14,021	6,772	107.0%		5.8%	4.5%
Total used vehicles	108,788	50,353	116.1%		8.0%	6.1%
Parts, service and collision repair	221,888	185,015	19.9%		55.5%	51.4%
Finance, insurance and other	204,643	147,516	38.7%		92.4%	92.5%
Total	675,771	486,961	38.8%		18.8%	16.9%

¹ This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". See Section 15. NON-GAAP AND OTHER FINANCIAL MEASURES of the Company's Management's Discussion & Analysis for the year ended December 31, 2021 for further information regarding the composition of these measures.
² 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 Consolidated Financial Statements and Management's Discussion and Analysis for the year ended December 31, 2021, which can be found on the Company's website at www.autocan.ca or on www.sedar.com.

NON-GAAP AND OTHER FINANCIAL 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, financing activities, cash and cash equivalents, and indebtedness determined in accordance with Canadian GAAP, as indicators of our performance. We provide these additional non-GAAP measures, capital management measures, and supplementary financial 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.

Adjusted EBITDA, adjusted EBITDA margin, normalized adjusted EBITDA, income statement impacts and adjusted EBITDA on a pre-IFRS 16 basis, adjusted EBITDA margin on a pre-IFRS 16 basis, pro forma adjusted EBITDA, pro forma normalized adjusted EBITDA, free cash flow, net indebtedness, and net indebtedness leverage ratio 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 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.

It should be noted that certain of the financial measures described below include pro forma items estimating the impact of the acquisitions if they had occurred on the first day of the relevant period, or as of a specified date. Readers should understand that these estimates were determined by management in good faith and are not indicative of what the historical results of the businesses acquired in the acquisitions actually were for the relevant period, or what those results would have been if the acquisitions had occurred on the dates indicated, or what they will be for any future period. As a result, the pro forma financial measures may not be indicative of the Company's financial position that would have prevailed, or operating results that would have been obtained, if the transactions had taken place on the dates indicated or of the financial position or operating results which may be obtained in the future. These pro forma financial measures are not a forecast or projection of future results. The actual financial position and results of operations of the Company for any period following the closing of the acquisitions will vary from the amounts set forth following pro forma financial measures, and such variation may be material.

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 a part of the Used Digital Retail Division);
• Non-cash charges (such as impairment, recoveries, gains or losses on free-standing 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 provisions for wholesale fraud and settlement income).

The Company believes adjusted EBITDA provides improved continuity with respect to the comparison of our operating performance over a period of time.

Normalized Adjusted EBITDA

With the onset of COVID-19 during the second quarter of 2020, the impact of COVID-19 related government restrictions resulted in charges that are one-time in nature, and related government programs resulted in subsidies that are non-recurring in the future. In addition, at the onset of the pandemic and related government lockdowns, the Company used the opportunity to complete a comprehensive review of all aspects of the business, in essence re-engineering the business model where applicable. As a result of the impacts of COVID-19 and the accompanying initial review, the Company recognized income, subsidies, write-downs, provisions, and non-recurring charges for impacts related to the pandemic.

Normalized adjusted EBITDA is an indicator of a company's operating performance over a period of time and ability to incur and service debt, normalized for charges that are non-recurring in nature related to the pandemic such as:

• Canada Emergency Wage Subsidy ("CEWS") income, expected to recur until the Company is no longer eligible for the subsidy;
• Canada Emergency Rent Subsidy ("CERS"), expected to recur until the Company is no longer eligible for the subsidy;
• One-time forgiveness of Small Business Association Paycheck Protection Program ("PPP") loans;
• One-time inventory write-downs for decreased demand for new and used vehicle inventory;
• One-time severance charges related to the reduction in the Company's workforce;
• One-time retention and recognition payments for key dealership employees;
• One-time write-off of prepaid advertising leads provisions for decreased new and used vehicles demand;
• One-time write-off of aged accounts receivable and onerous provisions; and
• True-up of accruals and other liabilities as a result of the COVID-19 related comprehensive review.

The Company believes normalized adjusted EBITDA provides improved continuity with respect to the comparison of our operating performance normalized for impacts related to the COVID-19 pandemic.

Pro Forma Adjusted EBITDA and Pro Forma Normalized Adjusted EBITDA

The Company believes pro forma adjusted EBITDA and pro forma normalized adjusted EBITDA provides improved understanding of the progress of our acquisition strategy as if the acquisitions had occurred at the beginning of the period. Pro forma adjusted EBITDA and pro forma normalized adjusted EBITDA includes management's estimate of the net income generated by our acquisitions prior to interest expense (other than interest expense on floorplan financing), income taxes, depreciation, and amortization, assuming acquisitions in the year had occurred on the first day of the 12 month period ended December 31, prior to any synergies, pursuant to the terms of the credit facilities. Pro forma adjustments estimated by management were derived from dealership financial statements. The Company's blended rate of Canadian corporate tax of 25.4% was applied to pro forma adjustments where applicable.

Adjusted EBITDA Margin and Adjusted EBITDA Margin on a Pre-IFRS 16 Basis

Adjusted EBITDA margin is an indicator of a company's operating performance specifically in relation to our revenue performance. The Company believes adjusted EBITDA margin and adjusted EBITDA margin on a pre-IFRS 16 basis provides improved continuity with respect to the comparison of our operating performance with retaining and growing profitability as our revenue and scale increases over a period of time.

Income Statement Impacts and Adjusted EBITDA on a Pre-IFRS 16 Basis

The Company adopted IFRS 16 on January 1, 2019. On adoption of IFRS 16, the Company recognized lease liabilities in relation to leases, which had previously been classified as 'operating leases' under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate. There are also corresponding income statement impacts to net income and other comprehensive income as identified in Section 21. IFRS 16 Impacts for the Period of the Company's Management's Discussion & Analysis for the year ended December 31, 2021.

The Company believes adjusted EBITDA on a pre-IFRS 16 basis provides improved continuity for purposes of comparing to our historical operating performance prior to fiscal year 2019. Our Credit Facility financial covenants are calculated and presented on a pre-IFRS 16 basis. In addition, the net indebtedness leverage ratio is calculated on a pre-IFRS 16 basis.

Adjusted EBITDA on a pre-IFRS 16 basis is calculated as adjusted EBITDA less the rental expense, fair market value rent adjustment and step lease rent adjustment eliminated from the adoption of IFRS 16 lease liabilities accounting standards

Free Cash Flow

Free cash flow is a measure used by Management to evaluate the Company's 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 such purposes. 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 expenditure (not including acquisitions of dealerships and dealership facilities).

Net Indebtedness Leverage Ratio

Net indebtedness leverage ratio is a measure used by management to evaluate the liquidity of the Company.

The Company believes presenting the net indebtedness leverage ratio on a pre-IFRS 16 basis provides improved continuity for purposes of comparing to our historical operating performance prior to fiscal year 2019 and remains relevant while our Credit Facility financial covenants continues to be calculated and presented on a pre-IFRS 16 basis. Net indebtedness leverage ratio is calculated as net indebtedness compared to Adjusted EBITDA pre-IFRS 16 on a TTM basis.

We list and define "CAPITAL MANAGEMENT MEASURES" below:

Net Indebtedness

Net indebtedness is used by management to evaluate the liquidity of the Company.

Net indebtedness is calculated as indebtedness, net of unamortized deferred financing costs, adding back embedded derivative asset, and less cash and cash equivalents.

NON-GAAP AND OTHER FINANCIAL MEASURES RECONCILIATIONS

Adjusted EBITDA, Normalized Adjusted EBITDA, Pro Forma Adjusted EBITDA, and Pro Forma Normalized Adjusted EBITDA Reconciliation

The following table illustrates adjusted EBITDA and normalized adjusted EBITDA for the three-month periods ended December 31, over the last two years of operations:

	2021	2020
Period from October 1 to December 31
Net income for the period	69,398	24,320
Add back:
Income tax expense	24,463	8,030
Depreciation of property and equipment	4,830	4,823
Interest on long-term indebtedness	6,161	3,964
Depreciation of right of use assets	7,465	6,037
Lease liability interest	6,520	5,256
	118,837	52,430
Add back:
Recoveries of non-financial assets, net	(39,846)	(11,248)
Share-based compensation (Used Digital Retail Division)	—	435
Loss (gain) on redemption liabilities	14,116	(2,108)
Unrealized fair value changes in derivative instruments	(2,853)	(841)
Amortization of loss on terminated hedges	817	817
Unrealized foreign exchange losses	25	442
Unrealized fair value changes on embedded derivative	(24,778)	—
Gain on termination of lease	(492)	—
Loss on disposal of assets, net	47	545
Adjusted EBITDA	65,873	40,472
Normalizing items:
Add back:
Inventory write-down	—	1,841
One-time employee recognition payments	—	309
Operational incentive payments	—	851
Less:
Canada Emergency Wage Subsidy	—	(2,789)
Canada Emergency Rent Subsidy	—	(200)
Normalized Adjusted EBITDA	65,873	40,484

The following table illustrates adjusted EBITDA, normalized adjusted EBITDA, pro forma adjusted EBITDA, and pro forma normalized adjusted EBITDA for the year ended December 31 for the last two years of operations:

	2021	2020
Period from January 1 to December 31
Net income (loss) for the period	167,199	(6,623)
Add back:
Income tax expense	54,021	5,418
Depreciation of property and equipment	17,272	17,372
Interest on long-term indebtedness	21,900	16,200
Depreciation of right of use assets	26,420	24,759
Lease liability interest	23,062	22,189
	309,874	79,315
Add back:
(Recoveries) impairment of non-financial assets, net	(39,846)	24,207
Share-based compensation (Used Digital Retail Division)	—	435
Loss (gain) on redemption liabilities	14,116	(762)
Loss on extinguishment of debt	1,128	4,002
Unrealized fair value changes in derivative instruments	(7,873)	2,809
Amortization of loss on terminated hedges	3,268	2,308
Unrealized foreign exchange losses	115	1,153
Unrealized fair value changes on embedded derivative	(29,306)	—
Loss on termination of lease, net	427	—
Gain on disposal of assets, net	(40)	(1,374)
Adjusted EBITDA	251,863	112,093
Normalizing items:
Add back:
Inventory write-down	—	22,725
Severance charges	—	8,170
Write-off of prepaid advertising leads	—	2,131
One-time retention and recognition payments for key dealership employees	—	1,742
One-time write-off of accounts receivable and onerous provisions	—	5,633
Other charges including true-up of accruals and other liabilities	—	4,686
One-time employee recognition payments	—	309
Operational incentive payments	—	851
Less:
Canada Emergency Wage Subsidy	(4,388)	(35,264)
Canada Emergency Rent Subsidy	(336)	(200)
Forgiveness of PPP loans	(6,728)	—
Normalized Adjusted EBITDA	240,411	122,876
Pro forma items had the acquisitions occurred on January 1, 2021^1:
Net income (loss) for the period	7,634	—
Add back:
Income tax expense (recovery)	2,464	—
Depreciation of property and equipment	1,765	—
Interest on long-term indebtedness	5,698	—
Depreciation of right of use assets	3,224	—
Lease liability interest	5,235	—
Pro Forma Adjusted EBITDA	277,883	112,093
Pro Forma Normalized Adjusted EBITDA	266,431	122,876

See the Company's Management's Discussion and Analysis for the year ended December 31, 2021 for complete footnote disclosures.

Segmented Adjusted EBITDA and Segmented Normalized Adjusted EBITDA Reconciliation

The following table illustrates segmented adjusted EBITDA and normalized adjusted EBITDA for the three-month period ended December 31, over the last two years of operations:

	Three Months Ended December 31, 2021				Three Months Ended December 31, 2020
	Canada	U.S.	Total		Canada	U.S.	Total
Period from October 1 to December 31
Net income (loss) for the period	62,253	7,145	69,398		25,355	(1,035)	24,320
Add back:
Income tax expense (recovery)	24,144	319	24,463		8,155	(125)	8,030
Depreciation of property and equipment	4,467	363	4,830		4,494	329	4,823
Interest on long-term indebtedness	4,818	1,343	6,161		3,739	225	3,964
Depreciation of right of use assets	6,796	669	7,465		5,387	650	6,037
Lease liability interest	5,630	890	6,520		4,303	953	5,256
	108,108	10,729	118,837		51,433	997	52,430
Add back:
(Recoveries) of non-financial assets, net	(39,846)	—	(39,846)		(11,248)	—	(11,248)
Share-based compensation (Used Digital Retail Division)	—	—	—		435	—	435
Loss (gain) on redemption liabilities	14,116	—	14,116		(2,108)	—	(2,108)
Unrealized fair value changes in derivative instruments	(2,853)	—	(2,853)		(841)	—	(841)
Amortization of loss on terminated hedges	817	—	817		764	53	817
Unrealized foreign exchange losses	25	—	25		442	—	442
Unrealized fair value changes on embedded derivative	(24,778)	—	(24,778)		—	—	—
Gain on termination of lease	(492)	—	(492)		—	—	—
Loss on disposal of assets, net	47	—	47		352	193	545
Adjusted EBITDA	55,144	10,729	65,873		39,229	1,243	40,472
Normalizing Items:
Add back:
Inventory write-down	—	—	—		1,841	—	1,841
One-time employee recognition payments	—	—	—		309	—	309
Operational incentive payments	—	—	—		851	—	851
Less:
Canada Emergency Wage Subsidy	—	—	—		(2,789)	—	(2,789)
Canada Emergency Rent Subsidy	—	—	—		(200)	—	(200)
Normalized Adjusted EBITDA	55,144	10,729	65,873		39,241	1,243	40,484

The following table illustrates segmented adjusted EBITDA and normalized adjusted EBITDA for the year ended December 31 for the last two years of operations:

	Year Ended December 31, 2021				Year Ended December 31, 2020
	Canada	U.S.	Total		Canada	U.S.	Total
Period from January 1 to December 31
Net income (loss) for the period	150,104	17,095	167,199		13,343	(19,966)	(6,623)
Add back:
Income tax expense (recovery)	53,702	319	54,021		5,543	(125)	5,418
Depreciation of property and equipment	15,995	1,277	17,272		16,151	1,221	17,372
Interest on long-term indebtedness	15,631	6,269	21,900		13,350	2,850	16,200
Depreciation of right of use assets	23,759	2,661	26,420		22,405	2,354	24,759
Lease liability interest	19,503	3,559	23,062		18,481	3,708	22,189
	278,694	31,180	309,874		89,273	(9,958)	79,315
Add back:
(Recoveries) impairment of non-financial assets, net	(39,846)	—	(39,846)		15,312	8,895	24,207
Share-based compensation (Used Digital Retail Division)	—	—	—		435	—	435
Loss (gain) on redemption liabilities	14,116	—	14,116		(762)	—	(762)
Loss on extinguishment of debt	1,128	—	1,128		4,002	—	4,002
Unrealized fair value changes in derivative instruments	(7,873)	—	(7,873)		2,809	—	2,809
Amortization of loss on terminated hedges	3,268	—	3,268		1,993	315	2,308
Unrealized foreign exchange losses	115	—	115		1,153	—	1,153
Unrealized fair value changes on embedded derivative	(29,306)	—	(29,306)		—	—	—
Loss on termination of lease, net	427	—	427		—	—	—
(Gain) loss on disposal of assets, net	(40)	—	(40)		(1,567)	193	(1,374)
Adjusted EBITDA	220,683	31,180	251,863		112,648	(555)	112,093
Normalizing Items:
Add back:
Inventory write-down	—	—	—		19,735	2,990	22,725
Severance charges	—	—	—		8,170	—	8,170
Write-off of prepaid advertising leads	—	—	—		2,131	—	2,131
One-time retention and recognition payments for key dealership employees	—	—	—		1,742	—	1,742
One-time write-off of accounts receivable and onerous provisions	—	—	—		5,633	—	5,633
Other charges including true-up of accruals and other liabilities	—	—	—		3,240	1,446	4,686
One-time employee recognition payments	—	—	—		309	—	309
Operational incentive payments	—	—	—		851	—	851
Less:
Canada Emergency Wage Subsidy	(4,388)	—	(4,388)		(35,264)	—	(35,264)
Canada Emergency Rent Subsidy	(336)	—	(336)		(200)	—	(200)
Forgiveness of PPP loans	—	(6,728)	(6,728)		—	—	—
Normalized Adjusted EBITDA	215,959	24,452	240,411		118,995	3,881	122,876

Quarter-to-Date Adjusted EBITDA Margin

The following table illustrates adjusted EBITDA margin for the three-month periods ended December 31, over the last two years of operations:

	2021	2020
Period from October 1 to December 31
Adjusted EBITDA	65,873	40,472
Revenue	1,195,782	876,121
Adjusted EBITDA Margin	5.5%	4.6%

Quarter-to-Date Adjusted EBITDA Margin on a Pre-IFRS 16 Basis

The following table illustrates adjusted EBITDA margin on a pre-IFRS 16 basis for the three-month periods ended December 31, over the last two years of operations:

	2021	2020
Period from October 1 to December 31
Adjusted EBITDA on a pre-IFRS 16 basis	53,464	30,559
Revenue	1,195,782	876,121
Adjusted EBITDA Margin on a Pre-IFRS 16 basis	4.5%	3.5%

Quarter-to-Date Adjusted EBITDA on a Pre-IFRS 16 Basis Reconciliation

The following table illustrates segmented adjusted EBITDA on a pre-IFRS 16 basis, for the three-month periods ended December 31, over the last two years of operations:

	Three Months Ended December 31, 2021				Three Months Ended December 31, 2020
	Canada	U.S.	Total		Canada	U.S.	Total
Adjusted EBITDA	55,144	10,729	65,873		39,229	1,243	40,472
Rental expense ^1	(11,040)	(2,149)	(13,189)		(8,522)	(2,210)	(10,732)
FMV rent adjustment ^1	—	1,044	1,044		—	1,103	1,103
Step lease adjustment ^1	(252)	(12)	(264)		(225)	(59)	(284)
Adjusted EBITDA on a pre-IFRS 16 basis	43,852	9,612	53,464		30,482	77	30,559

See the Company's Management's Discussion and Analysis for the quarter and year ended December 31, 2021 for complete footnote disclosures.

Year-to-Date Adjusted EBITDA on a Pre-IFRS 16 Basis Reconciliation

The following table illustrates segmented adjusted EBITDA on a pre-IFRS 16 basis, for the year ended December 31  for the last two years of operations:

	Year Ended December 31, 2021				Year Ended December 31, 2020
	Canada	U.S.	Total		Canada	U.S.	Total
Adjusted EBITDA	220,683	31,180	251,863		112,648	(555)	112,093
Rental expense ^1	(40,230)	(8,597)	(48,827)		(36,067)	(8,263)	(44,330)
FMV rent adjustment ^1	—	4,181	4,181		—	4,433	4,433
Step lease adjustment ^1	(722)	89	(633)		(1,013)	(244)	(1,257)
Adjusted EBITDA on a pre-IFRS 16 basis	179,731	26,853	206,584		75,568	(4,629)	70,939

See the Company's Management's Discussion and Analysis for the quarter and year ended December 31, 2021 for complete footnote disclosures.

Free Cash Flow

The following table illustrates free cash flow for the last eight consecutive quarters:

	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Cash provided by operating activities	10,153	13,721	68,604	20,506	20,447	54,366	54,114	7,350
Deduct:
Purchase of non-growth property and equipment	(2,550)	(1,349)	(801)	(1,115)	(1,207)	(922)	(1,557)	(1,195)
Free cash flow	7,603	12,372	67,803	19,391	19,240	53,444	52,557	6,155
Free cash flow - TTM	107,169	118,806	159,878	144,632	131,396	177,981	179,325	104,987

Net Indebtedness and Net Indebtedness Leverage Ratio Reconciliation

The following table illustrates the Company's net indebtedness and net indebtedness leverage ratio as at December 31, 2021 and December 31, 2020:

	December 31, 2021 $	December 31, 2020 $
Syndicated Credit Facility - revolving credit	63,842	68,827
Senior unsecured notes (including embedded derivative asset)	221,965	120,716
Mortgage and other debt	101	7,688
Indebtedness as reported	285,908	197,231
Add back:
Embedded derivative asset	29,306	—
Indebtedness for net indebtedness purpose	315,214	197,231
Cash and cash equivalents	(102,480)	(107,704)
Net indebtedness	212,734	89,527
Adjusted EBITDA - pre-IFRS 16 - trailing twelve months	206,584	70,939
Net indebtedness leverage ratio	1.0x	1.3x

Conference Call

A conference call to discuss the results for the three months ended December 31, 2021 will be held on March 3, 2022 at 9:00am Mountain (11:00am Eastern). To participate in the conference call, please dial 1.888.664.6392  approximately 10 minutes prior to the call.

This conference call will also be webcast live over the internet and can be accessed by all interested parties at the following URL: https://investors.autocan.ca/event/2021-q4-conference-call/

About AutoCanada

AutoCanada is a leading North American multi-location automobile dealership group currently operating 78 franchised dealerships, comprised of 28 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, Acura and Porsche branded vehicles. In 2021, our dealerships sold approximately 86,000 vehicles and processed over 800,000 service and collision repair orders in our 1,303 service bays generating revenue in excess of $4 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", including "with respect to", "among other things", "future performance", "expense reductions" and the "Go Forward Plan"), 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", "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]