AUTOCANADA COMPLETES SALE OF KIA OF LINCOLNWOOD AND ADVANCES U.S. EXIT STRATEGY

AUTOCANADA COMPLETES SALE OF KIA OF LINCOLNWOOD AND ADVANCES U.S. EXIT STRATEGY

EDMONTON, AB, March 26, 2026 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ), a multi-location North American automobile dealership group, announced today that it has completed the sale of Kia of Lincolnwood, in Lincolnwood, Illinois. This dealership is part of the U.S. dealerships reclassified as discontinued operations at year-end 2024.

In the 12-months ended December 31, 2025, Kia of Lincolnwood generated sales of approximately $53.0 million (2024 - $58.0 million) and incurred a net loss of $1.6 million (2024 – net loss of $2.0 million).

AutoCanada received approximately $13.4 million in cash on the sale, comprised of $7.1 million for goodwill and fixed assets, excluding inventory and net working capital, and $6.3 million for real estate. Net proceeds will be directed towards reducing the outstanding balance of the Company's revolving credit facility.

The disposition of Kia of Lincolnwood represents continued progress in the Company's previously announced plan to exit its U.S. Operations segment and strengthen its balance sheet. Since the reclassification of the U.S. segment as discontinued operations at the end of 2024, the Company has generated total gross proceeds net of working capital of approximately $62.4 million from U.S. asset sales and continues to expect total gross proceeds at the high end of its previously communicated range of $115 million to $130 million. The U.S. dealerships had a net loss from discontinued operations of $103.4 million in 2024.

In connection with this process, AutoCanada has received consent from its lending syndicate to amend the Total Funded Debt to Bank EBITDA¹ covenant under its credit facility. The maximum permitted ratio has been increased from 4.0x to 4.5x through June 30, 2026, providing the Company with additional financial flexibility as it continues to execute on the divestiture of its remaining U.S. dealerships. This amendment reflects the ongoing support of the Company's lending syndicate as the Company advances its strategic initiatives.

All dollar amounts in this press release are in Canadian dollars.

Forward Looking Statements

Certain statements contained in this press release are forward-looking statements and information (collectively "forward-looking statements"), within the meaning of 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, 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 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, 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 segment, which is classified as continuing operations, consists of 64 franchised dealerships across Canada, representing 23 automotive brands in eight 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 vehicles. In 2025, its Canadian dealerships sold approximately 71,000 new and used retail vehicles. 

AutoCanada's Canadian segment also operates 33 collision centres ("Collision Centres"), supported by 26 Original Equipment Manufacturer ("OEM") certifications spanning 37 vehicle brands.

AutoCanada's U.S. segment is classified as discontinued operations as the Company progresses the sale of its U.S. dealership portfolio. This portfolio consists of 11 franchised dealerships representing eight brands in Illinois, USA, and in 2025 sold approximately 8,000 new and used retail vehicles.

Additional Information

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

SOURCE AutoCanada Inc.