AUTOCANADA ANNOUNCES SECOND QUARTER RESULTS

AUTOCANADA ANNOUNCES SECOND QUARTER RESULTS Canada NewsWire EDMONTON, AB, Aug. 13, 2025 Revenue from continuing operations was $1,338.2 million as compared to $1,381.2 million in the prior year, a decrease of $(43.0) million Net income for the period from total operations was $18.9 million as compared to a net loss of $(33.1) million in the prior year Net income from continuing operations was $18.9 million as compared to $3.9 million in the prior year Net loss from discontinued operations was $0.0 million as compared to $(37.0) million in the prior year Diluted net income per share from continuing operations was $0.72 as compared to $0.12 in the prior year Adjusted EBITDA from total operations1 was $68.5 million as compared to $27.0 million in the prior year Adjusted EBITDA from continuing operations1 was $64.4 million as compared to $33.5 million in the prior year Adjusted EBITDA from discontinued operations1 was $4.1 million as compared to $(6.5) million in the prior year1 Total Net Funded Debt to Bank EBITDA Ratio2 reduced from 4.92x as at March 31, 2025 to 3.42x as at June 30, 2025 EDMONTON, AB, Aug. 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 June 30, 2025. Paul Antony, Executive Chairman, stated, "AutoCanada's second quarter results reflect the momentum we're building as our transformation takes hold. With $80.0 million in annualized savings already realized, we've raised our target to $115.0 million, exceeding the original $100.0 million ambition we committed to at the beginning of this year. At the same time, we've made decisive progress on the U.S. divestiture, with one dealership sold and a clear path to exit the remaining dealerships. Expected total net proceeds of $115.0 to $130.0 million from the sale of our U.S. dealerships will meaningfully deleverage the balance sheet and sharpen our focus on the core Canadian business. "Our team is squarely focused on completing the transformation, and we remain on track to deliver $48.5 million in net in-year savings by year-end, even after accounting for $29.3 million in restructuring costs," said Paul Antony, Executive Chairman. "While Canadian new vehicle demand has been strong so far this year, the potential impact of tariffs on the industry remains unclear. We may also see some near-term softness in same store sales as our store-level teams focus on execution and operational efficiency. As the transformation concludes, we expect sales momentum to normalize, underpinned by the comprehensive restructuring that has established a more efficient and sustainable cost structure, positioning the business to refocus on rebuilding volume from a stronger, more profitable foundation." As we enter the final phase of our transformation, AutoCanada has come full circle, returning to its roots as a focused consolidator of Canadian dealerships and collision centres. With the major pieces in place, the time is right for a leadership transition. As we close out the year, our priorities are clear: complete the U.S. exit, deliver the remaining savings, deleverage the balance sheet, and position the company for its next chapter of profitable growth. I want to sincerely thank our employees across the country who have worked relentlessly to drive this transformation, and our OEM partners for their continued support. It's been a privilege to lead this company through such a critical chapter in its history." ______________________________ 1 See "NON-GAAP AND OTHER FINANCIAL MEASURES" below. 2 This press release contains "SUPPLEMENTARY FINANCIAL MEASURES" and "FINANCIAL COVENANTS". Section 13. NON-GAAP AND OTHER FINANCIAL MEASURES and Section 6. LIQUIDITY AND CAPITAL RESOURCES of the Company's Management's Discussion & Analysis for the three-month period and six-month period ended June 30, 2025 ("MD&A") is hereby incorporated by reference for further information regarding the composition of these measures and financial covenants (accessible through the SEDAR website at www.sedarplus.ca). Second Quarter Key Highlights and Recent Developments Three-Months Ended June 30 Continuing Operations Financial Results 2025 2024  Revised 3 % Change Revenue 1,338,199 1,381,150 (3.1) % Same store revenue 1,317,396 1,327,438 (0.8) % Gross profit 225,367 220,758 2.1 % Gross profit percentage 2 16.8 % 16.0 % 0.8 ppts Operating expenses ("Opex") 170,737 186,497 (8.5) % Net income 18,911 3,935 380.6 % Basic net income per share attributable to AutoCanada shareholders 0.75 0.12 525.0 % Diluted net income per share attributable to AutoCanada shareholders 0.72 0.12 500.0 % Adjusted EBITDA 1 64,380 33,469 92.4 % Adjusted EBITDA margin 1 4.8 % 2.4 % 2.4 ppts    New retail vehicles sold (units) 2 8,790 9,311 (5.6) %    Used retail vehicles sold (units) 2 10,452 13,367 (21.8) % New vehicle gross profit per retail unit 2 4,544 4,823 (5.8) % Used vehicle gross profit per retail unit 2 1,774 760 133.4 % Parts and service ("P&S") gross profit 78,902 78,231 0.9 % Collision repair ("Collision") gross profit 16,561 16,122 2.7 % Finance, insurance and other ("F&I") gross profit per retail unit average 2 3,337 3,153 5.8 % Operating expenses before depreciation 2 157,094 172,680 (0.1) % Operating expenses before depreciation as a % of gross profit 2 69.7 % 78.2 % (8.5) ppts    Normalized opex before depreciation 1 147,478 164,040 (10.1) %    Normalized opex before depreciation as a % of gross profit 1 65.4 % 74.3 % (9.0) ppts Floorplan financing expense 9,018 17,376 (48.1) %  3 Comparative period revised to reflect current period presentation for reclassification of discontinued operations. Revenue decreased by (3.1)% in the second quarter of 2025 compared to the second quarter of 2024, primarily due to decreases in used vehicle sales and F&I. This decline is partially offset by increases in revenue from new vehicle sales, parts and service and collision repair services. Gross profit increased by 2.1% to $225.4 million in the second quarter of 2025 compared to the second quarter of 2024, driven by increases in used vehicle and collision repair services gross profit. These increases were partially offset by decreases in new vehicle, parts and service, and F&I. A key factor contributing to the increase in gross profit is the improvement in used vehicle gross profit per retail unit2, which offset the impact of lower overall total retail2 unit volumes from both new and used during the quarter. Used vehicle gross profit improvements are driven by better management of used vehicle inventory, which is a key focus of the ACX Operating method and lapping a used vehicle provision taken in the second quarter of 2024. Operating expenses before depreciation2 decreased by (9.0)% to $157.1 million in the second quarter of 2025 compared to the second quarter of 2024. Normalized operating expenses before depreciation1 decreased by (10.1)% to $147.5 million, and included the normalization of $6.0 million of restructuring charges related to the ongoing initiatives targeting $115.0 million in annual run-rate cost savings by the end of 2025. This guidance has been raised from $100.0 million in annual run-rate cost savings in-light of faster-than-expected progress achieved to date. Floorplan financing expenses decreased (48.1)% to $9.0 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 income for the period increased by 380.6% to $18.9 million in the second quarter of 2025 compared to the second quarter of 2024, as a result of items noted above, which is partially offset by higher income taxes. Adjusted EBITDA1 increased by 92.4% to $64.4 million in the second quarter of 2025 compared to the second quarter of 2024, while adjusted EBITDA margin1 improved 2.4 ppts to 4.8%. These improvements were driven by lower operating expenses before depreciation2, lower floorplan financing expenses and improved gross profit as noted above. 1  See "NON-GAAP AND OTHER FINANCIAL MEASURES" below. 2 This press release contains "SUPPLEMENTARY FINANCIAL MEASURES" and "FINANCIAL COVENANTS". Section 13. NON-GAAP AND OTHER FINANCIAL MEASURES and Section 6. LIQUIDITY AND CAPITAL RESOURCES of the Company's Management's Discussion & Analysis for the three-month period and six-month period ended June 30, 2025 ("MD&A") is hereby incorporated by reference for further information regarding the composition of these measures and financial covenants (accessible through the SEDAR website at www.sedarplus.ca). Collision Operations Highlights Three-Months Ended June 30 Collision Financial Results 2025 2024 % Change Revenue 38,420 30,563 25.7 % Gross profit 16,561 16,122 2.7 %    Gross profit percentage 2 43.1 % 52.8 % (9.7) ppts Adjusted EBITDA 1 3,737 3,065 21.9 %    Same store revenue 2 36,869 30,510 20.8 %    Same store gross profit 2 16,111 15,959 1.0 %    Same store gross profit percentage 2 43.7 % 52.3 % (8.6) ppts Revenue and gross profit increased as a result of strong customer demand, additional Original Equipment Manufacturer ("OEM") certifications, increased insurance referrals and increased hail repairs. Gross profit percentage2 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 percentage2 are consistent with overall business performance, with the reasons noted above. Adjusted EBITDA1 increased as a result of revenue growth and gross profit improvements described above. Other Recent Developments During the quarter: On April 30, 2025, the Company completed the divestiture of North Toronto Auction, a used vehicle auction business operating in Innisfil, Ontario for $3.3 million in proceeds. On May 28, 2025, the Company terminated its Alfa Romeo and FIAT franchise at Maple Ridge Chrysler Dodge Jeep Ram & Fraser Valley Alfa Romeo, located in Maple Ridge, British Columbia. After 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 in the second half of 2025. 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 $9.9 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. Conference Call A conference call to discuss the results for the three months ended June 30, 2025 will be held on August 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-q2-conference-call/. 1  See "NON-GAAP AND OTHER FINANCIAL MEASURES" below. 2 This press release contains "SUPPLEMENTARY FINANCIAL MEASURES" and "FINANCIAL COVENANTS". Section 13. NON-GAAP AND OTHER FINANCIAL MEASURES and Section 6. LIQUIDITY AND CAPITAL RESOURCES of the Company's Management's Discussion & Analysis for the three-month period and six-month period ended June 30, 2025 ("MD&A") is hereby incorporated by reference for further information regarding the composition of these measures and financial covenants (accessible through the SEDAR website at www.sedarplus.ca). 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 six-month period ended June 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 June 30, 2025 and the three-month period ended June 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) Three-month period ended Six-month period ended June 30, 2025 $ June 30, 2024 $ June 30, 2025 $ June 30, 2024 Revised 1 $ Continuing operations     Revenue (Note 6) 1,338,199 1,381,150 2,578,299 2,593,187     Cost of sales (Note 7) (1,112,832) (1,160,392) (2,154,896) (2,174,852) Gross profit 225,367 220,758 423,403 418,335    Operating expenses (Note 8) (170,737) (186,497) (345,613) (361,459) Operating profit before other income and expense 54,630 34,261 77,790 56,876 Lease and other income, net 1,744 1,196 3,893 3,585    Gain on disposal of assets, net (Note 27) 862 3,359 13,915 22,626 Net impairment losses on trade and other receivables (1,306) (709) (1,306) (1,600)    Impairment of non-financial assets (Note 14, 17) (2,380) — (2,380) (7,200) Operating profit 54,672 38,107 91,912 74,287 Finance costs (Note 9) (24,239) (30,487) (53,788) (60,276) Finance income (Note 9) 296 58 732 786 (Loss) Gain on redemption liabilities (1,183) (642) 1,141 (642) Other (losses) gains, net (2,338) 266 (1,264) 348 Income for the period before taxation from continuing operations 27,208 7,302 38,733 14,503 Income tax expense (Note 10) 8,297 3,367 10,115 2,515 Net income for the period from continuing operations 18,911 3,935 28,618 11,988 Net loss for the period from discontinued operations (Note 15) (32) (37,009) (12,891) (47,423) Net income (loss) for the period 18,879 (33,074) 15,727 (35,435) Other comprehensive (loss) income Items that may be reclassified to profit or loss Foreign operations currency translation (7,168) 511 (6,862) 2,959 Change in fair value of hedging instruments (Note 21) — — — (206) Income tax relating to these items (Note 10) (1,226) — (1,226) 51 Other comprehensive (loss) income for the period (8,394) 511 (8,088) 2,804 Comprehensive income (loss) for the period 10,485 (32,563) 7,639 (32,631) Net income (loss) for the period attributable to: AutoCanada shareholders 17,357 (34,282) 13,533 (36,689) Non-controlling interests 1,522 1,208 2,194 1,254 18,879 (33,074) 15,727 (35,435) Net income (loss) for the period attributable to AutoCanada shareholders arises from: Continuing operations 17,389 2,727 26,424 10,734 Discontinued operations (32) (37,009) (12,891) (47,423) 13,533 (34,282) 13,533 (36,689) Comprehensive income (loss) for the period attributable to: AutoCanada shareholders 8,963 (33,771) 5,445 (33,885) Non-controlling interests 1,522 1,208 2,194 1,254 10,485 (32,563) 7,639 (32,631) Comprehensive loss for the period attributable to Continuing operations 17,054 2,727 19,899 10,579 Discontinued operations (8,091) (36,498) (14,454) (44,464) 8,963 (33,771) 5,445 (33,885)   Three-month period ended Six-month period ended June 30, 2025 $ June 30, 2024 $ June 30, 2025 $ June 30, 2024 Revised 1 $ Net income (loss) per share attributable to AutoCanada shareholders: Basic from continuing operations 0.75 0.12 1.14 0.46 Basic from discontinued operations 0.00 (1.59) (0.56) (2.02) Basic 0.75 (1.47) 0.58 (1.56) Diluted from continuing operations 0.72 0.12 1.09 0.46 Diluted from discontinued operations 0.00 (1.59) (0.53) (2.02) Diluted 0.72 (1.47) 0.56 (1.56) Weighted average shares Basic (Note 23) 23,145,912 23,374,790 23,143,813 23,479,098 Diluted (Note 23) 24,208,467 23,374,790 24,177,599 23,479,098 1 Comparative period revised to reflect current period presentation. See Note 15 - "Discontinued Operations" for additional information The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca.  Condensed Interim Consolidated Statements of Financial Position (Unaudited) (in thousands of Canadian dollars) June 30, 2025 (Unaudited) $ December 31, 2024 $ ASSETS Current assets Cash 62,409 67,343 Trade and other receivables (Note 12) 163,961 173,568 Inventories (Note 13) 806,654 947,278 Current tax recoverable 13,474 10,205 Other current assets (Note 18) 18,834 11,993 Derivative financial instrument (Note 21) 402 376 1,065,734 1,210,763 Assets held for sale (Note 14) 303,271 332,693 Total current assets 1,369,005 1,543,456    Property and equipment (Note 16) 300,861 312,014    Right-of-use assets 349,916 389,958    Other long-term assets (Note 18) 12,552 16,501 Deferred income tax 20,222 18,840 Intangible assets 620,128 630,467 Goodwill 90,059 94,592 Total assets 2,762,743 3,005,828 LIABILITIES Current liabilities Trade and other payables (Note 19) 183,548 177,473 Revolving floorplan facilities (Note 20) 881,307 1,010,579 Current tax payable — 3,766 Vehicle repurchase obligations 3,369 3,705 Indebtedness (Note 20) 23,715 24,108 Lease liabilities 25,213 35,780 Redemption liabilities 21,924 23,066    Other liabilities (Note 21) 11,347 11,063 Derivative financial instruments (Note 21) — 1,741 1,150,423 1,291,281 Liabilities directly associated with assets held for sale (Note 14) 151,399 201,966 Total current liabilities 1,301,822 1,493,247    Long-term indebtedness (Note 20) 478,524 517,543    Long-term lease liabilities 395,446 421,392    Long-term redemption liabilities 25,000 25,000    Derivative financial instruments (Note 21) 9,448 8,705 Deferred income tax 54,323 44,613 Total liabilities 2,264,563 2,510,500 EQUITY Attributable to AutoCanada shareholders 476,453 468,027 Attributable to non-controlling interests 21,727 27,301 Total equity 498,180 495,328 2,762,743 3,005,828 The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca. Condensed Interim Consolidated Statements of Cash Flows (Unaudited) (in thousands of Canadian dollars) Three-month period ended Six-month period ended June 30, 2025 $ June 30, 2024 $ June 30, 2025 $ June 30, 2024 $ Cash provided by (used in): Operating activities Net income (loss) for the period 18,879 (33,074) 15,727 (35,435) Adjustments for: Income tax expense (Note 10) 8,297 16,953 10,115 16,101 Finance costs (Note 9, 15) 27,827 37,040 62,753 73,342 Depreciation of right-of-use assets (Note 8) 8,181 8,776 16,419 17,362 Depreciation of property and equipment (Note 8) 5,337 6,370 10,657 12,646 Amortization of intangible assets (Note 8) 125 125 248 251 Gain on disposal of assets, net (Note 27) (862) (3,359) (13,915) (22,626) Share-based compensation (Note 22) 2,340 2,196 3,983 4,401 Unrealized fair value changes on foreign exchange forward contracts (Note 21) (796) (182) (2,143) 2,191 Loss (gain) on redemption liabilities 1,183 642 (1,141) 642 Impairment of non-financial assets (Note 15, 17) 2,380 11,309 5,749 18,509 Net change in non-cash working capital (Note 26) (26,374) 25,542 (202) 45,762 46,517 72,338 108,250 133,146 Income taxes paid (1,822) (3,982) (9,050) (16,549) Interest paid 1 (24,885) (30,269) (60,687) (71,955) Tax withholdings paid on settlement of share-based awards (229) (1,038) (229) (1,079) 19,581 37,049 38,284 43,563 Investing activities Business acquisitions, net of cash acquired — (20,197) — (20,197)    Purchases of property and equipment (7,140) (8,743) (10,143) (20,021) Additions to intangible assets (58) (331) (128) (672) Adjustments to prior year business acquisitions (47) (491) (47) (505) Proceeds on sale of property and equipment 1,079 10,223 1,105 51,628 Proceeds on divestiture of dealership (Note 27) 3,291 — 3,291 — Proceeds on termination of loan agreement with subsidiary (Note 27) — — 30,107 — Proceeds on franchise termination (Note 27) — — 894 — (2,875) (19,539) 25,079 10,233 Financing activities Proceeds from indebtedness 210,943 147,191 385,755 353,013 Repayment of indebtedness (252,966) (153,191) (428,505) (356,405) Repurchase of common shares under Normal Course Issuer Bid — (5,778) — (7,722) Shares settled from treasury, net (Note 23) 188 350 — (181) Payments for purchase of Used Digital Division minority interest — — (22,500) Dividends paid to non-controlling interests (1,833) — (6,791) (4,294) Repayment of loans by non-controlling interests — — — 2,236 Acquisition of non-controlling interests — — (1,010) — Principal portion of lease payments, net (9,775) (7,960) (18,215) (15,754) (53,443) (19,388) (68,578) (51,607) Effect of exchange rate changes on cash 1,457 164 1,882 863 Net decrease in cash (35,280) (1,714) (3,333) 3,052 Cash at beginning of period per balance sheet 101,468 107,912 67,343 103,146 Cash at beginning of period included in assets held for sale related to discontinued operations (Note 15) 37,827 — 40,005 — Cash at end of period 104,015 106,198 104,015 106,198 Included in cash per balance sheet 62,409 106,198 62,409 106,198 Included in the assets held for sale of the discontinued operations (Note 15) 41,606 — 41,606 — The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at www.autocan.ca or on www.sedarplus.ca. 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 June 30: Three-Months Ended June 30, 2025 Three-Months Ended June 30, 2024 Revised 1 Canada U.S. Total Canada U.S. Total Period from April 1 to June 30 Net income (loss) for the period 18,576 303 18,879 2,430 (35,504) (33,074) Add back (deduct): Income tax expense 8,297 — 8,297 3,367 13,586 16,953 Depreciation of right of use assets 8,181 — 8,181 8,020 756 8,776 Depreciation of property and equipment 5,332 5 5,337 5,752 618 6,370 Amortization of intangible assets 125 — 125 125 — 125 Interest on long-term indebtedness 8,755 937 9,692 5,390 3,016 8,406 Lease liability interest 7,732 746 8,478 7,741 803 8,544 Impairment of non-financial assets 2,380 — 2,380 — 11,309 11,309 Loss on redemption liabilities 1,183 — 1,183 642 — 642 Canadian franchise dealership restructuring charges 5,984 — 5,984 — — — Unrealized fair value changes in derivative instruments (3,454) — (3,454) 1,124 — 1,124 Unrealized foreign exchange losses (gains) 2,338 — 2,338 (29) — (29) Software implementation costs 1,256 — 1,256 1,183 — 1,183 Cybersecurity incident costs 473 — 473 — — — Acquisition related costs 36 — 36 — — — Share-based compensation for transformation plan awards 1,281 — 1,281 — — — (Gain) loss on disposal of assets (1,979) 16 (1,963) (3,359) — (3,359) Adjusted EBITDA 66,496 2,007 68,503 32,386 (5,416) 26,970 Adjusted EBITDA from discontinued operations (1,995) (2,128) (4,123) 1,083 5,416 6,499 Adjusted EBITDA from continuing operations 64,501 (121) 64,380 33,469 — 33,469 1      Comparative period revised to reflect current period presentation for reclassification of discontinued operations. The following table illustrates segmented collision adjusted EBITDA from continuing operations for the three-months ended June 30. There is no discontinued operation in Collision Operations. Three-Months Ended June 30, 2025 Three-Months Ended June 30, 2024 Collision Operations Canada U.S. Total Canada U.S. Total Period from April 1 to June 30 Net income for the period 1,856 (126) 1,730 1,344 — 1,344 Add back: Depreciation of right of use assets 698 — 698 538 — 538 Depreciation of property and equipment 463 5 468 398 — 398 Lease liability interest 973 — 973 775 — 775 Loss (gain) on disposal of assets (132) — (132) 10 — 10 Adjusted EBITDA 3,858 (121) 3,737 3,065 — 3,065 Adjusted EBITDA Margin The following table illustrates segmented adjusted EBITDA margin from continuing operations for the three-month periods ended June 30: Three-Months Ended June 30, 2025 Three-Months Ended June 30, 2024 Revised 1 Canada U.S. Total Canada U.S. Total Adjusted EBITDA 64,501 (121) 64,380 33,469 — 33,469 Revenue 1,337,674 525 1,338,199 1,381,150 — 1,381,150 Adjusted EBITDA Margin 4.8 % (23.0) % 4.8 % 2.4 % — % 2.4 % 1      Comparative period revised to reflect current period presentation for reclassification of discontinued operations. 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 six-month periods ended June 30: Three-Months Ended June 30, 2025 Three-Months Ended June 30, 2024 Revised 1 Canada U.S. Total Canada U.S. Total Operating expenses before depreciation 156,786 308 157,094 172,680 — 172,680 Normalizing Items: Add back: Acquisition-related costs (36) — (36) (557) — (557) Software implementation costs (1,256) — (1,256) (1,183) — (1,183) Canadian franchise dealership restructuring charges (5,984) — (5,984) — — — Management transition costs — — — (4,704) — (4,704) Share-based compensation expense (2,340) — (2,340) (2,196) — (2,196) Normalized Opex before depreciation 147,170 308 147,478 164,040 — 164,040 Gross profit 225,180 187 225,367 220,758 — 220,758 Normalized Opex Before Depreciation as a percentage of gross profit (%) 65.4 % 164.7 % 65.4 % 74.3 % — % 74.3 % 1      Comparative period revised to reflect current period presentation for reclassification of discontinued operations. 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 June 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 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 17 franchised dealerships comprised of 15 brands, in Illinois, USA. Leader currently sells Audi, Chevrolet, Chrysler, Dodge, Honda, Hyundai, Jeep, Kia, Lincoln, Mercedes-Benz, Porsche, Ram, 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. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2025/13/c4447.html Contact: For further information contact: Samuel Cochrane, Chief Financial Officer, Phone: 604.910.5509, Email: [email protected] © 2026 Canjex Publishing Ltd. All rights reserved.