AUTOCANADA ANNOUNCES THIRD QUARTER RESULTS

• Revenue from continuing operations was $1,201.5 million as compared to $1,412.5 million in the prior year, a decrease of $211.0 million
• Net income for the period from total operations was $16.8 million as compared to $7.1 million in the prior year
  • Net (loss) income from continuing operations was $(2.9) million as compared to $27.2 million in the prior year
  • Net income (loss) from discontinued operations was $19.7 million as compared to net loss of $(20.1) million in the prior year
• Diluted net (loss) income per share from continuing operations of $(0.14) as compared to $1.09 in the prior year
• Adjusted EBITDA from total operations was $52.3 million as compared to $53.2 million in the prior year
  • Adjusted EBITDA from continuing operations was $58.1 million as compared to $63.1 million in the prior year
  • Adjusted EBITDA from discontinued operations was $(5.8) million as compared to $(9.9) million in the prior year
• Total Net Funded Debt to Bank EBITDA Ratio decreased from 3.42x as at June 30, 2025 to 3.40x as at September 30, 2025

EDMONTON, AB, Nov. 13, 2025 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ), a multi-location North American automobile dealership group, today reported its financial results for the three-month period ended September 30, 2025.

Samuel Cochrane, Interim CEO, stated, "This quarter reflects a period of transition as we work to complete the most significant cost transformation in AutoCanada's history. While top-line performance was softer, our cost reduction initiatives remain firmly on track and are building the structural efficiencies required to position the Company for sustained, profitable growth.

We remain focused on executing the remaining elements of the transformation plan introduced earlier this year, ensuring that our platform is leaner, more efficient, and built for long-term success. At the same time, we are beginning to look ahead to the next phase of our journey, improving performance, rebuilding momentum, and pursuing disciplined, profitable growth.

In the near term, our priorities will include expanding our collision operations and strengthening the performance of our dealership network under the new ACX framework, which is designed to drive consistent, profitable volume growth across our business.

I'm honored to step into the role of Interim CEO at such a pivotal moment. AutoCanada now has a solid foundation and a clear strategy. Our focus is on execution; running the business well, capturing the benefits of the transformation, and delivering value to our customers, employees, and shareholders.

I want to extend my sincere gratitude to our employees across Canada for their commitment and resilience throughout this transformation, and to our OEM partners for their continued collaboration and support. Together, we've built a stronger, more agile organization. Now, as we move into this next chapter, our focus turns to growth - capturing new opportunities, deepening customer relationships, and demonstrating what AutoCanada can achieve with its revitalized platform. I'm excited for what lies ahead and confident in our team's ability to deliver."

Third Quarter Key Highlights and Recent Developments

Revenue decreased by (14.9)% in the third quarter of 2025 compared to the third quarter of 2024, primarily due to decreases in new vehicle sales, used vehicle sales, parts and service and F&I. This decline is partially offset by an increase in revenue from collision repair services.

Gross profit decreased by (22.2)% to $187.4 million in the third quarter of 2025 compared to the third quarter of 2024, driven by decreases in new vehicle, used vehicle, parts and service, collision repair services and F&I gross profits. Key factors contributing to the decrease in gross profit include the impact of lower overall total retail¹ unit volumes from both new and used during the quarter, and lower new and used vehicle gross profit per retail unit.

Operating expenses before depreciation decreased by (10.7)% to $148.8 million in the third quarter of 2025 compared to the third quarter of 2024. Normalized operating expenses before depreciation decreased by (23.4)% to $126.3 million, and included the normalization of $17.6 million of restructuring charges related to the ongoing initiatives targeting $115.0 million in annual run-rate cost savings by the end of 2025.

Floorplan financing expenses decreased (44.3)% to $8.9 million due to reduced new and used vehicle inventory levels and lower interest rates. Inventory management has been a focus in conjunction with the implementation of the ACX Operating Method.

Net (loss) income for the period decreased by (110.7)% to $(2.9) million in the third quarter of 2025 compared to the third quarter of 2024, as a result of items noted above, partially offset by lower income taxes.

Adjusted EBITDA decreased by (7.9)% to $58.1 million in the third quarter of 2025 compared to the third quarter of 2024, while adjusted EBITDA margin increased by 0.3 ppts to 4.8%. The increase in margin was driven by lower operating expenses before depreciation and lower floorplan financing expenses as noted above, partially offset by decreases in gross profit.

Collision Operations Highlights

Revenue increased as a result of strong customer demand, additional Original Equipment Manufacturer ("OEM") certifications, increased insurance referrals and increased paintless dent repair.

Gross profit and gross profit percentage decreased due to an increase in paintless dent repair which has a lower margin profile than traditional collision repair.

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

Adjusted EBITDA decreased as a result of a higher mix of paintless dent repair which drove revenue growth and led to gross profit and gross profit percentage decreases described above.

Other Recent Developments

During the quarter:

• On July 11, 2025, the Company announced that Paul Antony will transition from his role as Executive Chair. The Board of Directors has begun a search for a Chief Executive Officer.
• On July 16, 2025, the Company announced that it has entered into definitive agreements to sell 13 franchised dealerships in its U.S. Operations segment for expected aggregate proceeds of approximately $82.7 million which includes approximately $6.4 million for real estate. The transactions are subject to customary closing conditions, including OEM approvals, and are anticipated to close within the next six months.
• On July 21, 2025, the Company announced that it has selected CarGurus as its preferred partner in Canada supporting digital marketing efforts.
• On July 29, 2025, the Company sold substantially all of the operating assets of Crystal Lake Chrysler Dodge Jeep Ram, located in Crystal Lake, Illinois, for cash consideration of $11.9 million plus closing adjustments. Crystal Lake Chrysler Dodge Jeep Ram was presented as held for sale in the U.S. Operations segment as at June 30, 2025.
• On August 13, 2025, the Company announced the appointment of Felix-Etienne Lebel to the Board of Directors.
• On August 20, 2025, the Company sold substantially all of the operating assets of Chevrolet of Palatine and Hyundai of Palatine, located in Palatine, Illinois, for cash consideration of $12.0 million plus closing adjustments. Chevrolet of Palatine and Hyundai of Palatine were previously presented as held for sale in the U.S. Operations segment.
• On August 26, 2025, the Company sold substantially all of the operating assets of North City Honda, located in Chicago, Illinois, for cash consideration of $19.8 million plus closing adjustments. North City Honda was previously presented as held for sale in the U.S. Operations segment.
• On September 22, 2025, S&P Global Ratings ("S&P"), an independent credit rating agency, revised our outlook from 'Negative' to 'Stable'.
• After the quarter:
• On October 6, 2025, the Company completed the acquisition of Doug's Place Strathcona, a collision and refinish repair facility located in Edmonton, Alberta, which is included within the Canadian Operations segment.
• On October 28, 2025, the Company announced the appointment of AutoCanada's Chief Financial Officer to the role of Interim Chief Executive Officer. Concurrently, the Executive Chair transitioned out of his role as AutoCanada's Executive Chair and as a director of the Company. In addition, the Company's Chief Strategy Officer & General Counsel will be transitioning out of his respective roles later this year.
• On November 13, 2025, the Company announced that AutoCanada's Chief Operating Officer and President, North American Operations will be transitioning out of their respective roles.

Conference Call

A conference call to discuss the results for the three months ended September 30, 2025 will be held on November 13, 2025 at 4:00 pm Mountain (6:00 pm Eastern). To participate in the conference call, please dial 1-888-510-2154 approximately 10 minutes prior to the call.

This conference call will also be webcast live over the internet and can be accessed by all interested parties at the following URL: https://investors.autocan.ca/2025-q3-conference-call/.

MD&A and Financial Statements

Information included in this press release is a summary of results. It should be read in conjunction with AutoCanada's Interim Consolidated Financial Statements ("Interim Financial Statements") and Management's Discussion and Analysis ("MD&A") for the three-month period and nine-month period ended September 30, 2025, which can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca.

All comparisons presented in this press release are between the three-month period ended September 30, 2025 and the three-month period ended September 30, 2024, unless otherwise indicated. Results are reported in Canadian dollars and have been rounded to the nearest thousand dollars, unless otherwise stated.

Condensed Interim Consolidated Statements of Comprehensive Income (Loss)

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

 Condensed Interim Consolidated Statements of Financial Position

(Unaudited)
(in thousands of Canadian dollars)

Condensed Interim Consolidated Statements of Cash Flows

(Unaudited)
(in thousands of Canadian dollars)

NON-GAAP AND OTHER FINANCIAL MEASURES

This press release contains certain financial measures that do not have any standardized meaning prescribed by GAAP. Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned these measures should not be construed as an alternative to net income (loss) or to cash provided by (used in) operating, investing, financing activities, cash, and indebtedness determined in accordance with GAAP, as indicators of our performance. We provide these additional non-GAAP measures ("Non-GAAP Measures"), capital management measures, and supplementary financial measures to assist investors in determining the Company's ability to generate earnings and cash provided by (used in) operating activities and to provide additional information on how these cash resources are used.

Adjusted EBITDA, adjusted EBITDA margin, normalized operating expenses before depreciation, and normalized operating expenses before depreciation as a percentage of gross profit are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Investors are cautioned that these Non-GAAP Measures should not replace net earnings or loss (as determined in accordance with GAAP) as an indicator of the Company's performance, cash flows from operating, investing and financing activities or as a measure of liquidity and cash flows. The Company's methods of calculating referenced Non-GAAP Measures may differ from the methods used by other issuers. Therefore, these measures may not be comparable to similar measures presented by other issuers.

We list and define these "NON-GAAP MEASURES" below:

Adjusted EBITDA

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is an indicator of a company's operating performance over a period of time and ability to incur and service debt. Adjusted EBITDA provides an indication of the results generated by our principal business activities prior to:

• Interest expense (other than interest expense on floorplan financing), income taxes, depreciation, and amortization;
• Charges that introduce volatility unrelated to operating performance by virtue of the impact of external factors (such as share-based compensation amounts attributed to certain equity issuances as part of the Used Digital Division);
• Non-cash charges (such as impairment, recoveries, gains or losses on derivatives, revaluation of contingent consideration and revaluation of redemption liabilities);
• Charges outside the normal course of business (such as restructuring, gains and losses on dealership divestitures, and real estate transactions); and
• Charges that are non-recurring in nature (such as resolution of lawsuits and legal claims, and share-based compensation amounts attributable to certain equity issuances as part of the transformation plan).

The Company considers this measure meaningful as it provides improved continuity with respect to the comparison of our operating performance over a period of time.

Adjusted EBITDA Margin

Adjusted EBITDA margin is an indicator of a company's operating performance specifically in relation to our revenue performance.

The Company considers this measure meaningful as it provides improved continuity with respect to the comparison of our operating performance with retaining and growing profitability as our revenue and scale changes over a period of time.

Normalized Operating Expenses ("Opex") Before Depreciation

Normalized operating expenses before depreciation is an indicator of a company's operating expense before depreciation over a period of time, normalized for the following items:

• Transaction costs related to acquisitions, dispositions, and open points;
• Software implementation costs associated with the configuration or customization of software as a service arrangement;
• Restructuring charges relate to non-recurring organizational changes to improve the Company's profitability and overall efficiency;
• Management transition costs; and
• Share-based compensation expense.

The Company considers this measure meaningful as it provides a comparison of our operating expense normalized for transactions that are not indicative of the Company's operating expenses over time.

Normalized Operating Expenses Before Depreciation as a Percentage of Gross Profit

Normalized operating expenses before depreciation as a percentage of gross profit is a measure of a company's normalized operating expenses before depreciation over a period of time in relation to gross profit.

The Company considers this measure meaningful as it provides a comparison of our operating performance, normalized for transactions that are not indicative of the Company's operating expenses, with our growing profitability as our gross profit and scale changes over a period of time.

NON-GAAP AND OTHER FINANCIAL MEASURES RECONCILIATIONS

Adjusted EBITDA and Segmented Adjusted EBITDA

The following table illustrates segmented adjusted EBITDA for the three-month periods ended September 30:

The following table illustrates segmented collision adjusted EBITDA from continuing operations for the three-months ended September 30. There is no discontinued operation in Collision Operations.

Adjusted EBITDA Margin

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

Normalized Operating Expenses Before Depreciation and Normalized Operating Expenses Before Depreciation as a Percentage of Gross Profit

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

Forward Looking Statements

Certain statements contained in this press release are forward-looking statements and information (collectively "forward-looking statements"), within the meaning of the applicable Canadian securities legislation. We hereby provide cautionary statements identifying important factors that could cause actual results to differ materially from those projected in these forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "projection", "vision", "goals", "objective", "target", "schedules", "outlook", "anticipate", "expect", "estimate", "could", "should", "plan", "seek", "may", "intend", "likely", "will", "believe", "shall" and similar expressions) and the financial outlook with respect to the transformation plan are not all historical facts and are forward-looking and may involve estimates and assumptions and are subject to risks, uncertainties and other factors some of which are beyond our control and difficult to predict.

Forward-looking statements and financial outlook in this press release include: AutoCanada's future financial position, expected run-rate operational expense savings from the implementation of the ACX Operating Method, the expected aggregate proceeds from the U.S. dealership divestitures, the completion and the anticipated timing of completion of the U.S. dealership disposition transactions, engagement in selling the remaining dealerships of the U.S. Operations segment, and the impact of the U.S. dealership divestitures on the Company's leverage ratio.

Forward-looking statements and financial outlook provide information about management's expectations and plans for the future and may not be appropriate for other purposes. Forward looking statements and financial outlook are based on various assumptions, and expectations that AutoCanada believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove correct. Those assumptions and expectations are based on information currently available to AutoCanada, including information obtained from third-party consultants and other third-party sources, and the historic performance of AutoCanada's businesses. AutoCanada cautions that the assumptions used to prepare such forward-looking statements and financial outlook, including AutoCanada's expected run-rate operational expense savings through the transformation plan, could prove to be incorrect or inaccurate.

In preparing the forward-looking statements and financial outlook, AutoCanada considered numerous economic, market and operational assumptions, including key assumptions listed under Section 3 Market and Financial Outlook of the MD&A.

The forward-looking statements and financial outlook are also subject to the risks and uncertainties set forth below. By their very nature, forward-looking statements and financial outlook involve numerous assumptions, risks and uncertainties, both general and specific. Should one or more of these risks and uncertainties materialize or should underlying assumptions prove incorrect, as many important factors are beyond our control, AutoCanada's actual performance and financial results may vary materially from those estimates and expectations contemplated, expressed or implied in the forward-looking statements or financial outlook. These risks and uncertainties include risks relating to failure to realize expected cost-savings, cost overruns in one-time restructuring expenses, compliance with laws and regulations, reduced customer demand, operational risks, force majeure, labour relations matters, our ability to access external sources of debt and equity capital, and the risks identified in (i) the MD&A under Section 12 Risk Factors and (ii) AutoCanada's most recent Annual Information Form (the "AIF"). The preceding list of assumptions, risks and uncertainties is not exhaustive.

Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements and financial outlook. Therefore, any such forward-looking statements and financial outlook are qualified in their entirety by reference to the factors discussed throughout this press release and in the MD&A.

Details of the Company's material forward-looking statements and financial outlook are included in the Company's most recent AIF. The AIF and other documents filed with securities regulatory authorities (accessible through the SEDAR+ website (www.sedarplus.ca) describe the risks, material assumptions, and other factors that could influence actual results and which are incorporated herein by reference.

When relying on our forward-looking statements and financial outlook to make decisions with respect to AutoCanada, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements and financial outlook are provided as of the date of this press release and, except as required by law, AutoCanada does not undertake to update or revise such statements to reflect new information, subsequent or otherwise. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or financial outlook.

About AutoCanada

AutoCanada's Canadian Operations segment, as of September 30, 2025, operates 64 franchised dealerships in Canada, comprised of 23 brands, in 8 provinces. AutoCanada currently sells Acura, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, and Volkswagen branded vehicles. In addition, AutoCanada's Canadian Operations segment currently operates 3 independent used dealerships ("Used Vehicle Operations") and 14 stand-alone collision centres within our group of 30 collision centres ("Collision Centres"). In 2024, our Canadian dealerships sold approximately 85,000 new and used retail vehicles. In addition, our Collision Centres offer an opportunity for the Company to retain customers at every touchpoint within the automotive ecosystem.

AutoCanada's U.S. Operations segment, operating as Leader Automotive Group ("Leader"), operates 13 franchised dealerships comprised of 9 brands, in Illinois, USA. Leader currently sells Audi, Hyundai, Kia, Lincoln, Mercedes-Benz, Porsche, Subaru, Toyota, and Volkswagen branded vehicles. In 2024, our U.S. dealerships sold approximately 12,900 new and used retail vehicles.

Additional Information

Additional information about AutoCanada is available at the Company's website at www.autocan.ca and on the SEDAR+ website at www.sedarplus.ca.

SOURCE AutoCanada Inc.