AutoCanada Inc. announces record fourth quarter and record annual financial results for the period ended December 31, 2011:

A conference call to discuss the results for the year ended December 31, 2011 will be held on March 23, 2012 at 11:00 a.m. Eastern time (9:00 a.m. Mountain time). To participate in the conference call, please dial 1-888-231-8191 or (647) 427-7450 approximately 10 minutes prior to the call. A live and archived audio webcast of the conference call will also be available on the Company's website www.autocan.ca.

EDMONTON, March 22, 2012 /PRNewswire/ - AutoCanada Inc. (the "Company" or "AutoCanada") (TSX: ACQ) today announced financial results for the year ended December 31, 2011 and the three month period ended December 31, 2011.


                         2011 Annual Operating Results
  • Revenue increased by 16.0% or $139.4 million to over $1 billion
  • Gross profit increased by 12.7% or $19.1 million
  • Same store revenue increased by 17.3%
  • Same store gross profit increased by 13.9%
  • EBITDA was $29.1 million vs. $16.7 million in 2010, a 74% increase
  • The number of new vehicles retailed increased by 13.6%
  • The number of used vehicles retailed decreased by 1.0%
  • Repair orders completed for the year were down 1.4%
  • Same store repair orders completed for the year were up 1.0%

In commenting on the financial results for the year ended December 31, 2011, Pat Priestner, Chief Executive Officer of AutoCanada Inc. stated that, "The Company reached a significant milestone this year with sales exceeding the billion dollar threshold for the first time in our history.  We achieved record results in 2011 with significant improvements to sales, gross profit and net earnings.  Our management team is very pleased with the performance of our dealerships in 2011 and would like to express our gratitude for the hard work and dedication of the members of our dealership teams, our head office team, our Manufacturer partners, and finance providers, all of whom contributed greatly to this achievement.  In addition, Management is pleased to be currently pursuing a number of opportunities, which if successful, could provide additional sources of long term shareholder value."


                         2011 Fourth Quarter Operating Results

  • Revenue increased 20.4% or $40.4 million
  • Gross profit increased by 18.2% or $6.5 million
  • Same store revenue increased by 24.8%
  • Same store gross profit increased by 20.6%
  • EBITDA was $7.5 million vs. $3.5 million in Q4 of 2010, a 117.6% increase
  • The number of new vehicles retailed increased by 13.2%
  • The number of used vehicles retailed increased by 12.0%
  • Repair orders completed for the quarter were down 1.5%
  • Same store repair orders completed for the quarter were up 4.2%

In commenting on the financial results for the three month period ended December 31, 2011, Pat Priestner, Chief Executive Officer of AutoCanada Inc. stated that, "The fourth quarter of 2011 was a very strong quarter for the Company with increases in revenue and gross profit in all four business streams.  We are pleased to have more than doubled our EBITDA for the quarter and to have increased our dividend for the fourth consecutive quarter, as announced on February 15, 2012."

Fourth Quarter 2011 Highlights

  • For the fourth quarter of 2011, the Company generated net earnings before other items (reversal of impairment of intangible assets and its related tax effect) of $4.5 million or basic and diluted earnings per share of $0.23.  Pre-tax earnings before other items (reversal of impairment of intangible assets) increased by $4.3 million to $6.2 million in the fourth quarter of 2011 as compared to $1.9 million in the same period in 2010.
  • Same store revenue increased by 24.8% in the fourth quarter of 2011, compared to the same quarter in 2010.  Same store gross profit increased by 20.6% in the fourth quarter of 2011, compared to the same quarter in 2010.
  • Revenue from existing and new dealerships increased 20.4% to $238.3 million in the fourth quarter of 2011 from $197.9 million in the same quarter in 2010.
  • Gross profit from existing and new dealerships increased 18.2% to $42.2 million in the fourth quarter of 2011 from $35.7 million in the same quarter in 2010.
  • EBITDA increased 117.6% to $7.5 million in the fourth quarter of 2011 from $3.5 million in the same quarter in 2010.
  • Free cash flow increased to $9.0 million in the fourth quarter of 2011 or $0.45 per share as compared to $5.7 million or $0.29 per share in the fourth quarter of 2010.
  • Adjusted free cash flow increased to $7.4 million in the fourth quarter of 2011 or $0.37 per share as compared to $2.7 million or $0.14 per share in 2010.
  • Adjusted return on capital employed increased to 5.3% in the fourth quarter of 2011 as compared to 2.0% in 2010.

2011 Highlights

  • For the year ended December 31, 2011, the Company generated net earnings before other items (reversal of impairment of intangible assets and its related tax effect) of $17.6 million, or basic and fully diluted earnings per share of $0.89.  Pre-tax earnings before other items (reversal of impairment of intangible assets) increased by $12.3 million to $23.8 million for the year ended December 31, 2011 as compared to $11.5 million in 2010.
  • Same store revenue and gross profit increased by 17.3% and 13.9% respectively in the year ended December 31, 2011, compared to the results of the Company for the 2010 year.
  • Revenue from existing and new dealerships increased 16.0% to $1.01 billion in the year ended December 31, 2011 from the $869.5 million that was generated by the Company in 2010.
  • Gross profit from existing and new dealerships increased by 12.7% to $169.1 million in the year ended December 31, 2011 from the $150.0 million that was generated by the Company in the 2010 year.
  • EBITDA increased 74.0% to $29.1 million for the year ended December 31, 2011 from the $16.7 million that was generated by the Company in the 2010 year.
  • Free cash flow decreased to $27.1 million in the year ended December 31, 2011 or $1.36 per share as compared to $29.9 million or $1.51 per share in 2010.
  • Adjusted free cash flow increased to $27.7 million in the year ended December 31, 2011 or $1.39 per share as compared to $14.0 million or $0.70 per share in 2010.
  • On November 4, 2011, the Company purchased substantially all of the net operating and fixed assets of Valley Autohouse (1984) Ltd. operating two dealerships as Valley Autohouse ("Abbotsford and Chilliwack Volkswagen").  The Abbotsford facility is an approximately 9,300 sq. ft. leased facility which includes eight service bays and a six car showroom. The dealership has been in operation since 1986 and in 2010 retailed approximately 210 new and 190 used vehicles.  The Chilliwack facility is an approximately 4,500 sq. ft. leased facility which includes 3 service bays and a single car showroom.  The dealership has been in operation since 2002 and in 2010 retailed approximately 30 new and 40 used vehicles.

Dividends

Management reviews the Company's financial results on a monthly basis.  The Board of Directors reviews the financial results on a quarterly basis, or as requested by Management, and determine whether a dividend shall be paid based on a number of factors.

The following table summarizes the dividends declared by the Company in 2011:

(In thousands of dollars)                  
            Total
Record date Payment date           Declared Paid
              $ $
February 28, 2011 March 15, 2011           795 795
May 31, 2011 June 15, 2011           995 995
August 31, 2011 September 15, 2011           1,988 1,988
November 30, 2011 December 15, 2011           2,386 2,386

On February 15, 2012, the Board declared a quarterly eligible dividend of $0.14 per common share on AutoCanada's outstanding Class A common shares, payable on March 15, 2012 to shareholders of record at the close of business on February 29, 2012.  The quarterly eligible dividend of $0.14 represents an annual dividend rate of $0.56 per share or a 17% increase in the dividend from the prior quarter.  The next scheduled dividend review will be in May of 2012.

SELECTED ANNUAL FINANCIAL INFORMATION

The following table shows the audited results of the Company for the years ended December 31, 2009, December 31, 2010 and December 31, 2011.  The results of operations for these periods are not necessarily indicative of the results of operations to be expected in any given comparable period.  The column below marked "CGAAP" represents financial information which has not been restated for the Company's adoption of IFRS and readers are cautioned that this column may not provide appropriate comparative information.

(In thousands of dollars except Operating Data
and gross profit %)
The Company
CGAAP

(Audited)
The Company
IFRS

(Audited)
The Company
IFRS

(Audited)
  2009 2010 2011
Income Statement Data
Revenue
775,836 869,507 1,008,858
  New vehicles 412,203 514,676 640,721
  Used vehicles 212,234 202,552 206,030
   Parts, service &  collision repair 108,164 108,558 110,262
  Finance, insurance & other 43,235 43,721 51,845
Gross profit 141,976 150,020 169,124
  New vehicles 29,308 38,164 47,705
  Used vehicles 19,913 16,885 17,381
  Parts, service & collision repair 53,338 55,888 57,480
   Finance, insurance & other 39,417 39,083 46,558
Gross profit % 18.3% 17.3% 16.8%
Operating expenses 121,813 130,237 136,846
Operating expenses as % of gross profit 85.8% 86.8% 80.9%
Finance costs - floorplan 4,855 7,536 8,057
Finance costs - long term debt 1.647 1,076 1,136
(Reversal of) Impairment of intangible assets - (8,059) (25,543)
Income taxes 449 4,956 12,509
Net earnings 12,578 14,596 36,784
EBITDA 1 18,352 16,740 29,131
Cash dividends per share 0.062 0.120 0.310
Basic earnings (loss) per share 0.633 0.734 1.850
Diluted earnings (loss) per share 0.633 0.734 1.850
       
Operating Data
Vehicles (new and used) sold
23,083 24,239 27,998
New retail vehicles sold 11,117 12,767 14,499
New fleet vehicles sold 2,233 2,717 4,832
Used retail vehicles sold 9,733 8,755 8,667
Number of service & collision repair orders completed 301,282 309,705 305,298
Absorption rate 2 89% 86% 88%
# of dealerships 22 23 24
# of same store dealerships 3 19 21 21
# of service bays at period end 331 339 333
Same store revenue growth 3 (10.5)% 10.5% 17.3%
Same store gross profit growth 3 (7.8)% 4.1% 13.9%
     

1  EBITDA has been calculated as described under "NON-GAAP MEASURES".
2  Absorption has been calculated as described under "NON-GAAP MEASURES"
3 Same store revenue growth & same store gross profit growth is calculated using franchised automobile dealerships that we have owned for at least 2 full years.
   

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.

(In thousands of dollars except Operating
Data and gross profit %)
                               
    Q1
2010
  Q2
2010
  Q3
2010
  Q4
2010
  Q1
2011
  Q2
2011
  Q3
2011
  Q4
2011
Income Statement Data                                
  New vehicles   114,520   144,655   141,533   113,967   128,303   196,850   172,688   142,880
  Used vehicles   49,034   57,181   50,922   45,414   44,906   52,054   55,351   53,719
  Parts, service & collision repair   26,168   27,501   26,540   28,351   26,462   28,256   26,871   28,673
  Finance, insurance & other   10,067   12,442   11,060   10,151   11,113   13,577   14,109   13,046
Revenue   199,789   241,779   230,055   197,883   210,784   290,737   269,019   238,318
                                 
  New vehicles   8,128   11,030   9,983   9,023   9,724   13,974   12,740   11,267
  Used vehicles   4,099   4,906   4,221   3,659   3,486   4,302   5,020   4,573
  Parts, service & collision repair   13,252   14,612   14,031   13,994   13,277   15,159   14,493   14,551
  Finance, insurance & other   9,082   11,107   9,843   9,050   9,947   12,117   12,641   11,853
Gross profit   34,561   41,655   38,078   35,725   36,434   45,552   44,894   42,244
                                 
Gross profit %   17.3%   17.2%   16.6%   18.1%   17.3%   15.7%   16.7%   17.7%
Operating expenses   30,740   34,280   33,207   32,010   31,891   35,127   35,742   34,086
Operating exp. as % of gross profit   88.9%   82.3%   87.2%   89.6%   87.5%   77.1%   79.6%   80.7%
Finance costs - floorplan   1,670   2,230   2,042   1,594   1,685   2,311   2,190   1,871
Finance costs - long-term debt   236   230   278   332   283   323   296   234
Reversal of impairment of intangibles   -   -   -   (8,059)   -   -   -   (25,543)
Income taxes   516   1,330   692   2,418   690   2,029   1,646   8,144
Net earnings 4   1,414   3,624   1,983   7,575   1,995   5,951   5,230   23,608
EBITDA 1, 4
Basic earnings (loss) per share
Diluted earnings (loss) per share
  3,096
0.071
0.071
  6,164
0.182
0.182
  4,011
0.100
0.100
  3,469
0.381
0.381
  4,047
0.100
0.100
  9,321
0.299
0.299
  8,216
0.263
0.263
  7,547
1.187
1.187
Operating Data
Vehicles (new and used) sold
  5,676   6,994   6,350   5,219   5,826   8,210   7,649   6,313
New retail vehicles sold   2,787   3,614   3,358   3,008   3,050   4,158   3,907   3,405
New fleet vehicles sold   661   919   831   306   796   1,900   1,340   775
Used retail vehicles sold   2,228   2,461   2,161   1,905   1,980   2,152   2,402   2,133
Number of service & collision repair orders completed   75,311   80,072   77,285   77,037   72,360   80,851   76,176   75,911
Absorption rate 2   85%   87%   85%   86%   80%   91%   90%   91%
# of dealerships at period end   22   23   23   23   23   22   22   24
# of same store dealerships 3   19   19   19   21   22   21   21   21
# of service bays at period end   331   339   339   339   339   322   322   333
Same store revenue growth 3   16.9%   19.4%   6.7%   2.4%   2.7%   19.3%   21.6%   24.8%
Same store gross profit growth 3   11.1%   7.5%   (4.0)%   2.9%   2.9%   8.2%   22.9%   20.6%
                                 
Balance Sheet Data                                
Cash and cash equivalents   23,615   31,880   34,329   37,541   39,337   43,837   49,366   53,641
Accounts receivable   40,701   46,787   37,149   32,832   42,260   51,539   44,172   42,448
Inventories   153,847   177,294   137,507   118,088   134,865   149,481   159,732   136,869
Revolving floorplan facilities   160,590   194,388   145,652   124,609   152,075   172,600   175,291   150,816
1  EBITDA has been calculated as described under "NON-GAAP MEASURES".
2  Absorption has been calculated as described under "NON-GAAP MEASURES".
3  Same store revenue growth & same store gross profit growth is calculated using franchised automobile dealerships that we have owned for at least 2 full years.
4  The results from operations have been lower in the first and fourth quarters of each year, largely due to consumer purchasing patterns during the holiday season, inclement weather and the reduced number of business days during the holiday season. As a result, our financial performance is generally not as strong during the first and fourth quarters than during the other quarters of each fiscal year. The timing of acquisitions may have also caused substantial fluctuations in operating results from quarter to quarter.
   

The following table summarizes the results for the year ended December 31, 2011, on a same store basis by revenue source, and compares these results to the same periods in 2010.

 
Same Store Gross Profit and Gross Profit Percentage
  For the Year Ended
  Gross Profit     Gross Profit %
(In thousands of dollars except %
change and gross profit %)    
Dec. 31,
2011
Dec. 31,
2010
%
Change
  Dec. 31,
2011
Dec. 31,
2010
Change
                   
Revenue Source
New vehicles
    45,772 36,389 25.8%   7.6% 7.6%    0.0%
Used vehicles     16,897 16,772 0.7%   8.5% 8.6%     (0.1)%
Finance, insurance and other     44,941 37,407 20.1%   90.6% 89.9%       0.6%
Subtotal     107,610 90,568 19.4%        
Parts, service and collision repair     54,609 51,886 5.2%   52.2% 51.4%        0.7%
Total     162,219 142,454 13.9%   16.9% 17.4% (0.5)%
               

The following table summarizes the results for the three-month period ended December 31, 2011 on a same store basis by revenue source and compares these results to the same period in 2010.

 
Same Store Gross Profit and Gross Profit Percentage
  For the Three-Month Period Ended
  Gross Profit   Gross Profit %
(In thousands of dollars except %
change and gross profit %)
Dec. 31,
2011
Dec. 31,
2010
%
Change
  Dec. 31,
2011
Dec. 31,
2010

Change
Revenue Source              
New vehicles 10,835 8,554 26.7%   7.9% 8.2% (0.3)%
Used vehicles 4,398 3,620 21.5%   8.4% 8.3%         0.1%
Finance, insurance and other 11,507 8,558 34.5%   91.5% 89.9%         1.6%
Subtotal 26,740 20,732 29.0%        
Parts, service and collision repair 13,923   12,981 7.3%   50.7% 49.2%         1.5%
Total 40,663 33,713 20.6%   17.8% 18.4% (0.6)%
               

About AutoCanada

AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 24 franchised dealerships in British Columbia, Alberta, Manitoba, Ontario, New Brunswick and Nova Scotia. In 2011, our dealerships sold approximately 28,000 vehicles and processed approximately 300,000 service and collision repair orders in our 333 service bays during that time.

Our dealerships derive their revenue from the following four inter-related business operations: new vehicle sales; used vehicle sales; parts, service and collision repair; and finance and insurance. While new vehicle sales are the most important source of revenue, they generally result in lower gross profits than used vehicle sales, parts, service and collision repair operations and finance and insurance sales. Overall gross profit margins increase as revenues from higher margin operations increase relative to revenues from lower margin operations. We earn fees for arranging financing on new and used vehicle purchases on behalf of third parties.  Under our agreements with our retail financing sources we are required to collect and provide accurate financial information, which if not accurate, may require us to be responsible for the underlying loan provided to the consumer.

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 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", "expect", "plan", "seek", "may", "intend", "likely", "will", "believe" 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 document.

The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website 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.

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

EBITDA

EBITDA is a measure commonly reported and widely used by investors as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric.  The Company believes EBITDA assists investors in comparing a company's performance on a consistent basis without regard to depreciation and amortization and asset impairment charges which are non-cash in nature and can vary significantly depending upon accounting methods or non-operating factors such as historical cost.  References to "EBITDA" are to earnings before interest expense (other than interest expense on floorplan financing and other interest), income taxes, depreciation, amortization and asset impairment charges.

EBIT

EBIT is a measure used by management in the calculation of Return on capital employed (defined below).  Management's calculation of EBIT is EBITDA (calculated above) less depreciation and amortization.

Free Cash Flow

Free cash flow is a measure used by management to evaluate its performance.  While the closest Canadian GAAP measure is cash provided by operating activities, free cash flow is considered relevant because it provides an indication of how much cash generated by operations is available after capital expenditures.  It shall be noted that although we consider this measure to be free cash flow, financial and non-financial covenants in our credit facilities and dealer agreements may restrict cash from being available for distributions, re-investment in the Company, potential acquisitions, or other purposes.  Investors should be cautioned that free cash flow may not actually be available for growth or distribution of the Company.  References to "Free cash flow" are to cash provided by (used in) operating activities (including the net change in non-cash working capital balances) less capital expenditures (not including acquisitions of dealerships and dealership facilities).

Adjusted Free Cash Flow

Adjusted free cash flow is a measure used by management to evaluate its performance.  Adjusted free cash flow is considered relevant because it provides an indication of how much cash generated by operations before changes in non-cash working capital is available after deducting expenditures for non-growth capital assets.  It shall be noted that although we consider this measure to be adjusted free cash flow, financial and non-financial covenants in our credit facilities and dealer agreements may restrict cash from being available for distributions, re-investment in the Company, potential acquisitions, or other purposes.  Investors should be cautioned that adjusted free cash flow may not actually be available for growth or distribution of the Company.  References to "Adjusted free cash flow" are to cash provided by (used in) operating activities (before changes in non-cash working capital balances) less non-growth capital expenditures.

Adjusted Average Capital Employed

Adjusted average capital employed is a measure used by management to determine the amount of capital invested in AutoCanada and is used in the measure of Adjusted Return on Capital Employed (described below).  Adjusted average capital employed is calculated as the average balance of interest bearing debt for the period (including current portion of long term debt, excluding revolving floorplan facilities) and the average balance of shareholders equity for the period, adjusted for impairments of intangible assets, net of deferred tax.  Management does not include future income tax, non-interest bearing debt, or revolving floorplan facilities in the calculation of adjusted average capital employed as it does not consider these items to be capital, but rather debt incurred to finance the operating activities of the Company.

Absorption Rate

Absorption rate is an operating measure commonly used in the retail automotive industry as an indicator of the performance of the parts, service and collision repair operations of a franchised automobile dealership. Absorption rate is not a measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP. Therefore, absorption rate may not be comparable to similar measures presented by other issuers that operate in the retail automotive industry.  References to ''absorption rate'' are to the extent to which the gross profits of a franchised automobile dealership from parts, service and collision repair cover the costs of these departments plus the fixed costs of operating the dealership, but does not include expenses pertaining to our head office. For this purpose, fixed operating costs include fixed salaries and benefits, administration costs, occupancy costs, insurance expense, utilities expense and interest expense (other than interest expense relating to floor plan financing) of the dealerships only.

Average Capital Employed

Average capital employed is a measure used by management to determine the amount of capital invested in AutoCanada and is used in the measure of Return on Capital Employed (described below).  Average capital employed is calculated as the average balance of interest bearing debt for the period (including current portion of long term debt, excluding revolving floorplan facilities) and the average balance of shareholders equity for the period.  Management does not include future income tax, non-interest bearing debt, or revolving floorplan facilities in the calculation of average capital employed as it does not consider these items to be capital, but rather debt incurred to finance the operating activities of the Company.

Return on Capital Employed

Return on capital employed is a measure used by management to evaluate the profitability of our invested capital.  As a corporation, management of AutoCanada may use this measure to compare potential acquisitions and other capital investments against our internally computed cost of capital to determine whether the investment shall create value for our shareholders.  Management may also use this measure to look at past acquisitions, capital investments and the Company as a whole in order to ensure shareholder value is being achieved by these capital investments.  Return on capital employed is calculated as EBIT (defined above) divided by Average Capital Employed (defined above).

Adjusted Return on Capital Employed

Adjusted return on capital employed is a measure used by management to evaluate the profitability of our invested capital.  As a corporation, management of AutoCanada may use this measure to compare potential acquisitions and other capital investments against our internally computed cost of capital to determine whether the investment shall create value for our shareholders.  Management may also use this measure to look at past acquisitions, capital investments and the Company as a whole in order to ensure shareholder value is being achieved by these capital investments.  Adjusted return on capital employed is calculated as EBIT (defined above) divided by Adjusted Average Capital Employed (defined above).

Cautionary Note Regarding Non-GAAP Measures

EBITDA, EBIT, Free Cash Flow, Adjusted Free Cash Flow, Absorption Rate, Average Capital Employed and Return on Capital Employed are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP.  Investors are cautioned that these non-GAAP measures should not replace net earnings or loss (as determined in accordance with GAAP) as an indicator of the Company's performance, of its cash flows from operating, investing and financing activities or as a measure of its liquidity and cash flows. The Company's methods of calculating EBITDA, EBIT, Free Cash Flow, Adjusted Free Cash Flow, Absorption Rate, Average Capital Employed and Return on Capital Employed may differ from the methods used by other issuers. Therefore, the Company's EBITDA, EBIT, Free Cash Flow, Adjusted Free Cash Flow, Absorption Rate, Average Capital Employed and Return on Capital Employed may not be comparable to similar measures presented by other issuers.

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

AutoCanada Inc.
Consolidated Statements of Comprehensive Income
For the Years Ended
(in thousands of Canadian dollars except for share and per share amounts)

  December 31,
2011
$
December 31,
2010
$
Revenue       1,008,858        869,507 
Cost of sales       (839,734)        (719,487) 
Gross profit       169,124        150,020 
Operating expenses       (136,846)        (130,237) 
Operating profit before other income       32,278        19,783 
     
Gain (loss) on disposal of assets       (41)        6 
Reversal of impairment of assets       25,543        8,059 
Operating profit       57,780        27,848 
     
Finance costs       (9,848)        (9,217) 
Finance income       1,361        921 
Net comprehensive income for the year before taxation       49,293        19,552 
     
Income tax       12,509        4,956 
Net comprehensive income for the period       36,784        14,596 
Earnings per share     
Basic        1.850        0.734 
Diluted        1.850        0.734 
     
Weighted average shares     
Basic        19,880,930        19,880,930 
Diluted        19,880,930        19,880,930 

The accompanying notes are an integral part of these consolidated financial statements.

Approved on behalf of the Company:

(Signed) "Gordon R. Barefoot", Director (Signed) "Robin Salmon", Director

AutoCanada Inc.
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)

  December 31,
                 2011  
$
December 31,
                 2010 
$
January 1,
2010
$
ASSETS      
Current assets      
Cash and cash equivalents       53,641        37,541        21,528 
Trade and other receivables       42,448        32,832        35,323 
Inventories       136,869        118,088        108,324 
Other current assets       1,120        1,148        1,646 
        234,078        189,609        166,821 
Property and equipment       25,975        25,590        17,600 
Intangible assets       66,181        40,018        30,600 
Goodwill       380        309        - 
Other long-term assets       7,609        5,909        2,198 
Deferred tax       -        -        3,492 
        334,223        261,435        220,711 
LIABILITIES      
Current liabilities      
Trade and other payables       32,132        26,622        24,831 
Revolving floorplan facilities       150,816        124,609        102,370 
Current tax payable       2,046        -        - 
Current lease obligations       1,204        907        175 
Current indebtedness       2,859        277        96 
        189,057        152,415        127,472 
Long-term lease obligations       -        120        289 
Long-term indebtedness       20,115        24,974        22,785 
Deferred tax       12,056        1,552        - 
        221,228        179,061        150,546 
EQUITY      
Share capital       190,435        190,435        190,435 
Contributed surplus       3,918        3,918        3,918 
Accumulated deficit       (81,358)        (111,979)        (124,188) 
        112,995        82,374        70,165 
        334,223        261,435        220,711 

The accompanying notes are an integral part of these consolidated financial statements.

AutoCanada Inc.
Consolidated Statements of Changes in Equity
For the Years Ended
(in thousands of Canadian dollars)

  Share
capital
$
Contributed
surplus
$
Total
capital
$
Accumulated
deficit
$
Equity
$
Balance,  January 1, 2011        190,435        3,918        194,353        (111,979)        82,374 
Net comprehensive income       -        -        -        36,784        36,784 
Dividends declared on common shares       -        -        -        (6,163)        (6,163) 
Balance, December 31, 2011       190,435        3,918        194,353        (81,358)        112,995 

  Share
capital
$
Contributed
surplus
$
Total
capital
$
Accumulated
deficit
$
Equity
$
Balance, January 1, 2010        190,435        3,918        194,353        (124,188)        70,165 
Net comprehensive income       -        -        -        14,596        14,596 
Dividends declared on common shares       -        -        -        (2,387)        (2,387) 
Balance, December 31, 2010       190,435        3,918        194,353        (111,979)        82,374 

The accompanying notes are an integral part of these consolidated financial statements.

AutoCanada Inc.
Consolidated Statements of Cash Flows
For the Years Ended
(in thousands of Canadian dollars)

  December 31,
2011
$
December 31,
2010
$
Cash provided by (used in)    
Operating activities    
Net comprehensive income       36,784        14,596 
Income taxes       12,509        4,956 
Shared-based payments       302        57 
Amortization of property and equipment       4,245        4,171 
Amortization of prepaid rent       452        452 
Loss (gain) on disposal of property and equipment       40        (6) 
Gain on reversal of impairment of assets       (25,543)        (8,059) 
Net change in non-cash working capital       1,238        18,177 
        30,027        34,344
     
Investing activities    
Business acquisitions       (1,753)        (3,550) 
Purchases of property and equipment       (2,954)        (10,487) 
Proceeds on sale of property and equipment       79        64 
Prepayments of rent       (2,160)        (4,163) 
Proceeds on divestiture of dealership       1,464        - 
        (5,324)        (18,136) 
     
Financing activities    
Repayment of long term indebtedness       (2,440)        (4,318) 
Proceeds from long term indebtedness       -        6,510 
Dividends paid       (6,163)        (2,387) 
        (8,603)        (195)
     
     
Increase in cash       16,100        16,013 
     
Cash and cash equivalents at beginning of year       37,541        21,528 
Cash and cash equivalents at end of year       53,641        37,541 

The accompanying notes are an integral part of these consolidated financial statements.



 

 

 

 

 

SOURCE AutoCanada Inc.




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