News Releases

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

AutoCanada Inc. Logo (CNW Group/AutoCanada Inc.)

  • 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.

For further information: Mike Borys, Chief Financial Officer, Phone: 780.509.2808, Email: mborys@autocan.ca