EDMONTON, AB, Nov. 19, 2024 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ) a leader in Canadian automotive retail, today announced the completion of the sale of Okanagan Chrysler, located in Kelowna, British Columbia, to Kot Auto Group. This strategic divestment supports AutoCanada's focus on enhancing profitability and lowering leverage.

"This sale is part of a series of strategic steps we are taking to position AutoCanada for future growth," said Paul Antony, Executive Chairman. "By reallocating resources, we're able to sharpen our focus on core operations, reduce debt and strengthen profitability."

In the twelve months ending September 30, 2024, Okanagan Chrysler retailed 262 new and 437 used light vehicles, generating sales of $57.2 million. AutoCanada received $10.0 million in cash, excluding net working capital, with proceeds directed toward reducing the outstanding balance on the Company's revolving credit facility. This transaction is expected to be immediately accretive to Adjusted EBITDA margin.

AutoCanada is a leading North American multi-location automobile dealership group currently operating 82 franchised dealerships, comprised of 28 brands, in eight provinces in Canada as well as a group in Illinois, USA. AutoCanada currently sells Acura, Alfa Romeo, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, FIAT, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Lincoln, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, Toyota, Volkswagen, and Volvo branded vehicles. In addition, AutoCanada's Canadian Operations segment currently operates 3 used vehicle dealerships and 1 used vehicle auction business supporting the Used Digital Division, 5 RightRide division locations, and 11 stand-alone collision centres within our group of 27 collision centres. In 2023, the Company generated revenue in excess of $6 billion and our dealerships sold over 100,000 retail vehicles.

Additional Information

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

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 identified 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" and similar expressions) are not historical facts and are forward looking. In particular, this press release contains forward-looking statements with respect to, among other things, our strategic steps to position the Company for future growth and the impact of the sale of Okanagan Chrysler on the Company's leverage, Adjusted EBITDA margin and earnings per share.

Forward-looking statements are provided to provide information about management's expectations and plans for the future and may not be appropriate for other purposes. Forward looking statements 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 and the historic performance of AutoCanada's businesses.

The forward-looking statements are also subject to the risks and uncertainties set forth in the Company's Management's Discussion & Analysis for the three-month period and nine-month period ended September 30, 2024 ("MD&A") under the heading "Risk Factors" and AutoCanada's most recent Annual Information Form.

SOURCE AutoCanada Inc.