Canada Dividend Investor: ACQ - <span class="din">AutoCanada Inc. reports all-time record quarterly profit and announces an increase in its quarterly dividend:</span> (CAD 0.16)

Company: Autocanada Inc
Stock Name: ACQ
Amount: CAD 0.16
Announcement Date: 09/08/2012
Record Date: 29/08/2012

Dividend Detail:

A conference call to discuss the results for the reporting period ended
June 30, 2012 will be held on August 9, 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, Aug. 9, 2012 /CNW/ - AutoCanada Inc. (the "Company" or
"AutoCanada") (TSX: ACQ) today announced financial results for the
reporting period ended June 30, 2012

��

��2012 Second Quarter Operating Results

Revenue increased 1.4% or $4.0 million to $294.8 million

Gross profit increased by 7.5% or $3.4 million to $49.0 million

Same store revenue increased by 2.4%

Same store gross profit increased by 7.1%

EBITDA was $10.2 million vs. $9.3 million in Q2 of 2011, a 9.7% increase

Pre-tax net earnings increased by $0.9 million or 11.3% to $8.9 million

Net earnings increased by $0.7 million or 11.7% to $6.7 million

The number of same store new vehicles retailed increased by 7.5%

The number of same store used vehicles retailed increased by 12.4%

Same store repair orders completed for the quarter went down by 1.8%

In commenting on the financial results for the three month period ended
June 30, 2012, Pat Priestner, Chief Executive Officer of AutoCanada
Inc. stated that, "The second quarter of 2012 was the Company's most
profitable quarter in its history, exceeding our previously most
profitable quarter by approximately 10% in terms of EBITDA and over 10%
in terms of pre-tax earnings.�� During the second quarter of 2012, we
generated solid revenue and gross profit gains with strong retail sales
volumes for both new and used vehicles.�� The second quarter was also
notable as we were able to secure three new dealerships, with the
investments in two General Motors dealerships in Sherwood Park - the
first dealerships we have secured with General Motors of Canada - and a
third with Kia Canada, which is an open point dealership opportunity in
Edmonton.�� We are excited by the development of new relationships with
two highly regarded manufacturers, as well as the potential to earn
solid returns on these investments.�� The three dealerships will be an
excellent addition to our Edmonton area platform."

Commenting on the announcement of an increase in its quarterly dividend,
Mr. Priestner stated, "Within the context of the continued strength of
our operations, our financial performance, and our confidence in the
outlook for the automotive retail market in Canada, the Board of
Directors held its annual business review meeting on July 10, 2012.��
The recent acquisition opportunities, along with the 2012 PwC
Trendsetter Report which indicates a dealership succession issue within
the coming years due to an aging dealer body and ever increasing
facility capital requirements, have led the Board to believe that there
will be greater opportunities in the coming years than had been
previously considered as independent owners exit the business.�� It is
expected that the bulk of these growth opportunities will come in the
latter two to five years, more so than in the short term.�� As such,
while the Board remains committed to a high dividend, the Board very
much supports Management in actively seeking accretive growth
opportunities as a means to provide superior long term shareholder
value.�� Without targeting a specific dividend payout ratio based on
earnings, the Board of Directors will remain committed to a high
dividend which it shall periodically review within the context of
earnings growth, alternative strategic opportunities to re-invest in
the business, and sustainability, as evidenced by its decision to raise
the quarterly dividend to a rate of $0.16 per share or an annual rate
of $0.64 per share."

Second Quarter 2012 Highlights

The Company generated net earnings of $6.7 million or earnings per share
of $0.338 versus earnings per share of $0.299 in the second quarter of
2011.�� Pre-tax earnings increased by $0.9 million to $8.9 million in
the second quarter of 2012 as compared to $8.0 million in the same
period in 2011.

Same store revenue increased by 2.4% in the second quarter of 2012,
compared to the same quarter in 2011.�� Same store gross profit
increased by 7.1% in the second quarter of 2012, compared to the same
quarter in 2011.

Revenue from existing and new dealerships increased 1.4% to $294.8
million in the second quarter of 2012 from $290.7 million in the same
quarter in 2011.

Gross profit from existing and new dealerships increased 7.5% to $49.0
million in the second quarter of 2012 from $45.6 million in the same
quarter in 2011.

EBITDA increased 9.7% to $10.2 million in the second quarter of 2012
from $9.3 million in the same quarter in 2011.

Free cash flow decreased to $2.9 million in the second quarter of 2012
or $0.15 per share as compared to $4.7 million and $0.24 per share in
the second quarter of 2011, mainly due a land purchase in Q2 2012.

Adjusted free cash flow increased to $9.2 million in the second quarter
of 2012 or $0.47 per share as compared to $8.9 million or $0.45 per
share in 2011.

Return on capital employed on a trailing 12 month basis of 22.2% as
compared to 16.0% at June 30, 2011.

Dividends

Management reviews the Company's financial results on a monthly basis.��
The Board of Directors reviews the financial results periodically to
determine whether a dividend shall be paid based on a number of
factors.

The following table summarizes the dividends declared by the Company in
2012:

(In thousands of dollars) ��
��	��	��	��	Total
Record date	��	Payment date ��	��	Declared	��	Paid
��	��	��	��	$	��	$
February 28, 2012 May 31, 2012 August 31, 2012	��	March 15, 2012 June 15, 2012 September 17, 2012	��	2,783 2,982 3,181	��	2,783 2,982 -

On August 9, 2012, the Board declared a quarterly eligible dividend of
$0.16 per common share on AutoCanada's outstanding Class A common
shares, payable on September 17, 2012 to shareholders of record at the
close of business on August 31, 2012.�� The quarterly eligible dividend
of $0.16 represents an annual dividend rate of $0.64 per share or a
6.3% increase in the annual dividend rate from the prior quarter.

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 %)

��

Q3

2010

��

Q4

2010

��

Q1

2011

��

Q2

2011

��

Q3

2011

��

Q4

2011

��

Q1

2012

��

Q2

2012

Income Statement Data

��

New vehicles

��

141,533

��

113,967

��

128,303

��

196,850

��

172,688

��

142,880

��

147,383

��

186,649

��

Used vehicles

��

50,922

��

45,414

��

44,906

��

52,054

��

55,351

��

53,719

��

60,453

��

62,822

��

Parts, service & collision repair

��

26,540

��

28,351

��

26,462

��

28,256

��

26,871

��

28,673

��

26,913

��

28,847

��

Finance, insurance & other

��

11,060

��

10,151

��

11,113

��

13,577

��

14,109

��

13,046

��

13,648

��

16,451

Revenue

��

230,055

��

197,883

��

210,784

��

290,737

��

269,019

��

238,318

��

248,397

��

294,769

��

New vehicles

��

9,983

��

9,023

��

9,725

��

13,974

��

12,740

��

11,267

��

12,046

��

14,647

��

Used vehicles

��

4,221

��

3,659

��

3,486

��

4,301

��

5,020

��

4,573

��

4,412

��

4,237

��

Parts, service & collision repair

��

14,031

��

13,994

��

13,277

��

15,159

��

14,493

��

14,551

��

14,004

��

15,228

��

Finance, insurance & other

��

9,843

��

9,050

��

9,947

��

12,118

��

12,641

��

11,853

��

12,386

��

14,878

Gross profit

��

38,078

��

35,725

��

36,435

��

45,552

��

44,894

��

42,244

��

42,848

��

48,990

��

Gross profit %

��

16.6%

��

18.1%

��

17.3%

��

15.7%

��

16.7%

��

17.7%

��

17.2%

��

16.6%

Operating expenses

��

33,207

��

32,010

��

31,891

��

35,127

��

35,742

��

34,086

��

35,381

��

37,661

Operating exp. as % of gross profit

��

87.2%

��

89.6%

��

87.5%

��

77.1%

��

79.6%

��

80.7%

��

82.6%

��

76.9%

Finance costs - floorplan

��

2,042

��

1,594

��

1,685

��

2,311

��

2,190

��

1,871

��

1.935

��

2,510

Finance costs - long-term debt

��

278

��

332

��

283

��

323

��

296

��

234

��

230

��

256

Reversal of impairment of intangibles

��

(8,059)

��

(25,543)

��

Income taxes

��

692

��

2,418

��

690

��

2,029

��

1,646

��

8,144

��

1,441

��

2,216

Net earnings ⁴

��

1,983

��

7,575

��

1,994

��

5,950

��

5,230

��

23,608

��

4,113

��

6,711

EBITDA ^{1, 4}

��

4,011

��

3,469

��

4,047

��

9,319

��

8,216

��

7,547

��

6,808

��

10,210

Basic earnings (loss) per share

��

0.100

��

0.381

��

0.100

��

0.299

��

0.263

��

1.187

��

0.207

��

0.338

Diluted earnings (loss) per share

��

0.100

��

0.381

��

0.100

��

0.299

��

0.263

��

1.187

��

0.207

��

0.338

��

Operating Data

Vehicles (new and used) sold

��

6,350

��

5,219

��

5,826

��

8,210

��

7,649

��

6,313

��

6,836

��

8,154

New retail vehicles sold

��

3,358

��

3,008

��

3,050

��

4,158

��

3,907

��

3,405

��

3,434

��

4,400

New fleet vehicles sold

��

831

��

306

��

796

��

1,900

��

1,340

��

775

��

969

��

1,313

Used retail vehicles sold

��

2,161

��

1,905

��

1,980

��

2,152

��

2,402

��

2,133

��

2,433

��

2,441

Number of service & collision repair orders completed

��

77,285

��

77,037

��

72,360

��

80,851

��

76,176

��

75,911

��

74,439

��

78,104

Absorption rate ²

��

85%

��

86%

��

80%

��

91%

��

90%

��

91%

��

81%

��

89%

# of dealerships at period end

��

# of same store dealerships ³

��

# of service bays at period end

��

339

��

339

��

339

��

322

��

322

��

333

��

333

��

333

Same store revenue growth ³

��

6.7%

��

2.4%

��

2.7%

��

19.3%

��

21.6%

��

24.8%

��

20.2%

��

2.4%

Same store gross profit growth ³

��

(4.0)%

��

2.9%

��

2.9%

��

8.2%

��

22.9%

��

20.6%

��

18.3%

��

7.1%

��

Balance Sheet Data

��

Cash and cash equivalents

��

34,329

��

37,541

��

39,337

��

43,837

��

49,366

��

53,641

��

53,403

��

51,198

Accounts receivable

��

37,149

��

32,832

��

42,108

��

51,539

��

44,172

��

42,448

��

51,380

��

52,042

Inventories

��

137,507

��

118,088

��

134,710

��

149,481

��

159,732

��

136,869

��

155,778

��

201,302

Revolving floorplan facilities

��

145,652

��

124,609

��

152,075

��

172,600

��

175,291

��

150,816

��

178,145

��

221,174

(In thousands of dollars except Operating

Data and gross profit %)

��

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 three and six month
periods ended June 30, 2012 on a same store basis by revenue source and
compare these results to the same periods in 2011.

��

Same Store Revenue and Vehicles Sold
��	For the Three Months Ended					��	For the Six Months Ended
��	��	��	��	��	��	��	��	��	��	��	��
(In thousands of dollars except % change and vehicle data)	June 30, 2012	��	June 30, 2011	��	% Change	��	June 30, 2012	��	June 30, 2011	��	% Change
��	��	��	��	��	��	��	��	��	��	��	��
Revenue Source	��	��	��	��	��	��	��	��	��	��	��
New vehicles	176,520	��	183,504	��	(3.8)%	��	316,268	��	301,956	��	4.7%
Used vehicles	59,762	��	49,865	��	19.8%	��	117,861	��	92,911	��	26.9%
Finance & insurance and other	15,594	��	12,854	��	21.3%	��	28,579	��	23,335	��	22.5%
Subtotal	248,876	��	246,223	��	��	��	462,708	��	418,202	��	��
Parts, service & collision repair	27,248	��	26,448	��	3.0%	��	52,802	��	51,070	��	3.4%
Total	279,124	��	272,671	��	2.4%	��	515,510	��	469,272	��	9.9%
��	��	��	��	��	��	��	��	��	��	��	��
New vehicles - retail sold	4,052	��	3,769	��	7.5%	��	7,207	��	6,509	��	10.7%
New vehicles - fleet sold	1,313	��	1,832	��	(28.3)%	��	2,282	��	2,590	��	(11.9)%
Used vehicles sold	2,286	��	2,033	��	12.4%	��	4,591	��	3,898	��	17.8%
Total	7,651	��	7,634	��	0.2%	��	14,080	��	12,997	��	8.3%
Total vehicles retailed	6,338	��	5,921	��	9.2%	��	11,798	��	10,407	��	13.4%

The following table summarizes the results for the three and six month
periods ended June 30, 2012 on a same store basis by revenue source and
compare these results to the same periods in 2011.

Same Store Gross Profit and Gross Profit Percentage

��

For the Three Months Ended

��

For the Six Months Ended

��

Gross Profit

��

Gross Profit %

��

Gross Profit

��

Gross Profit %

(In thousands of

dollars except %

change and gross

profit %)

��

June 30,

2012

��

June 30,

2011

��

%

Change

��

June 30,

2012

��

June 30,

2011

��

Change

��

June 30,

2012

��

June 30,

2011

��

%

Change

��

June 30,

2012

��

June 30,

2011

��

Change

��

Revenue Source

��

New vehicles

��

13,778

��

13,281

��

3.7%

��

7.8%

��

7.2%

��

0.6%

��

25,196

��

22,508

��

11.9%

��

8.0%

��

7.5%

��

0.5%

Used vehicles

��

3,932

��

4,165

��

(5.6)%

��

6.6%

��

8.4%

��

(1.8)%

��

8,107

��

7,594

��

6.8%

��

6.9%

��

8.2%

��

(1.3)%

Finance & insurance and other

��

14,200

��

11,579

��

22.6%

��

91.1%

��

90.1%

��

1.0%

��

26,092

��

21,050

��

24.0%

��

91.3%

��

90.2%

��

1.1%

Subtotal

��

31,910

��

29,025

��

9.9%

��

59,395

��

51,152

��

16.1%

��

Parts, service & collision repair

��

14,408

��

14,231

��

1.2%

��

52.9%

��

53.8%

��

(0.9)%

��

27,707

��

26,566

��

4.3%

��

52.5%

��

52.0%

��

0.5%

Total

��

46,318

��

43,256

��

7.1%

��

16.6%

��

15.9%

��

0.7%

��

87,101

��

77,718

��

12.1%

��

16.9%

��

16.6%

��

0.3%

��

AutoCanada Inc.

Condensed Interim Consolidated Statements of Comprehensive Income

(Unaudited)

(in thousands of Canadian dollars except for share and per share
amounts)

��	��	Three month period ended	��	Three month period ended	��	Six month period ended	��	Six month period ended
��	��	June 30, 2012 $	��	June 30, 2011 $	��	June 30, 2012 $	��	June 30, 2011 $
Revenue (Note 6)	��	294,769	��	290,737	��	543,165	��	501,521
Cost of sales(Note 7)	��	(245,779)	��	(245,185)	��	(451,327)	��	(419,535)
Gross profit	��	48,990	��	45,552	��	91,838	��	81,986
Operating expenses (Note 8)	��	(37,661)	��	(35,127)	��	(73,041)	��	(67,018)
Operating profit before other income (expense)	��	11,329	��	10,425	��	18,797	��	14,968
(Loss) Gain on disposal of assets	��	(39)	��	35	��	(66)	��	28
Income from investment in associate (Note 11)	��	83	��	-	��	83	��	-
Operating profit	��	11,373	��	10,460	��	18,814	��	14,996
Finance costs (Note 9)	��	(2,943)	��	(2,794)	��	(5,274)	��	(4,914)
Finance income (Note 9)	��	497	��	313	��	940	��	580
Net comprehensive income for the period before taxation	��	8,927	��	7,979	��	14,480	��	10,662
Income tax (Note 10)	��	2,216	��	2,029	��	3,658	��	2,719
Net comprehensive income for the period	��	6,711	��	5,950	��	10,822	��	7,943
��	��	��	��	��	��	��	��	��
Earnings per share��	��	��	��	��	��	��	��	��
Basic	��	0.338	��	0.299	��	0.544	��	0.400
Diluted	��	0.338	��	0.299	��	0.544	��	0.400
��	��	��	��	��	��	��	��	��
Weighted average shares��	��	��	��	��	��	��	��	��
Basic	��	19,876,139	��	19,880,930	��	19,878,535	��	19,880,930
Diluted	��	19,876,139	��	19,880,930	��	19,878,535	��	19,880,930

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

Approved on behalf of the Company:

��

(Signed) "Gordon R. Barefoot", Director��

��

(Signed) "Robin Salmon", Director

AutoCanada Inc.

Condensed Interim Consolidated Statements of Financial Position

(Unaudited)

(in thousands of Canadian dollars except for share and per share
amounts)

��	��	June 30, ��2012�� (Unaudited) $	��	December 31, ��2011�� (Audited) $
ASSETS	��	��	��	��
Current assets	��	��	��	��
Cash and cash equivalents	��	51,198	��	��53,641
Trade and other receivables (Note 12)	��	52,042	��	��42,448
Inventories (Note 13)	��	201,302	��	��137,016
Other current assets	��	2,763	��	��1,120
��	��	307,305	��	��234,225
Property and equipment	��	28,035	��	��25,975
Investment in associate (Note 11)	��	4,237	��	��-
Intangible assets	��	66,181	��	��66,181
Goodwill	��	380	��	��380
Other long-term assets	��	7,923	��	��7,609
��	��	414,061	��	��334,370
LIABILITIES	��	��	��	��
Current liabilities	��	��	��	��
Trade and other payables (Note 15)	��	33,769	��	��32,279
Revolving floorplan facilities (Note 16)	��	221,174	��	��150,816
Current tax payable	��	5,500	��	��2,046
Current lease obligations (Note 17)	��	1,152	��	��1,204
Current indebtedness (Note 16)	��	2,806	��	��2,859
��	��	264,401	��	��189,204
Long-term indebtedness (Note 16)	��	23,027	��	20,115
Deferred tax	��	9,126	��	12,056
��	��	296,554	��	221,375
EQUITY	��	117,507	��	112,995
��	��	414,061	��	334,370

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

AutoCanada Inc.

Condensed Interim Consolidated Statements of Changes in Equity

For the Periods Ended

(Unaudited)

(in thousands of Canadian dollars)

��	Share capital $	Treasury shares $	Contributed surplus $	Total capital $	Accumulated deficit $	Equity $
Balance,�� January 1, 2012��	��190,435��	��-��	��3,918��	��194,353��	��(81,358)��	��112,995��
Net comprehensive income	��-��	��-��	��-��	��-��	��10,822��	��10,822��
Dividends declared on common shares	��-��	��-��	��-��	��-��	��(5,765)��	��(5,765)��
Common shares repurchased (Note 20)	��-��	��(910)��	��-��	��(910)��	��-��	��(910)��
Share-based compensation	��-��	��-��	��365��	��365��	��-��	��365��
Balance, June 30, 2012	��190,435��	��(910)��	��4,283��	��193,808��	��(76,301)��	��117,507��
��	��	��	��	��	��	��
��	��	��	��	��	��	��
��	Share capital $	Treasury shares $	Contributed surplus $	Total capital $	Accumulated deficit $	Equity $
Balance, January 1, 2011��	��190,435��	��-��	��3,918��	��194,353��	��(111,979)��	��82,374��
Net comprehensive income	��-��	��-��	��-��	��-��	��7,943��	��7,943��
Dividends declared on common shares	��-��	��-��	��-��	��-��	��(3,777)��	��(3,777)��
Balance, June 30, 2011	��190,435��	��-��	��3,918��	��194,353��	��(107,813)��	��86,540��

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

AutoCanada Inc.

Condensed Interim Consolidated Statements of Cash Flows

For the Periods Ended

(Unaudited)

(in thousands of Canadian dollars)

��	��	��			��
��	��	��	Three month period ended June 30, 2012	Three month period ended June 30, 2011	Six month period ended June 30, 2012	Six month period ended June 30, 2011
Cash provided by (used in):	��	��	��	��	��	��
Operating activities	��	��	��	��	��	��
Net comprehensive income	��	��	��6,711��	��5,950��	��10,822��	��7,943��
Income taxes	��	��	��2,216��	��2,029��	��3,658��	��2,719��
Amortization of prepaid rent	��	��	��113��	��113��	��226��	��226��
Amortization of property and equipment	��	��	��1,027��	��1,017��	��2,051��	��2,097��
Loss (Gain) on disposal of assets	��	��	��39��	��(35)��	��66��	��(28)��
Share-based compensation	��	��	��197��	��-��	��360��	��-��
Income from investment in associate	��	��	��(83)��	��-��	��(83)��	��-��
Income taxes paid	��	��	��(611)��	��-��	��(3,099)��	��-��
Net change in non-cash working capital	��	��	��(3,040)��	��(3,785)��	��(3,925)��	��(3,499)��
��	��	��	��6,569��	��5,289��	��10,076��	��9,458��
Investing activities	��	��	��	��	��	��
Investment in associate	��	��	��(4,154)��	��-��	��(4,154)��	��-��
Purchases of property and equipment (Note 14)	��	��	��(3,624)��	��(612)��	��(3,985)��	��(1,542)��
Prepayments of rent	��	��	��-��	��(540)��	��(540)��	��(1,080)��
Proceeds on sale of property and equipment	��	��	��6��	��9��	��40��	��6��
Proceeds on divestiture of subsidiary	��	��	��-��	��1,464��	��-��	��1,464��
��	��	��	��(7,772)��	��321��	��(8,639)��	��(1,152)��
Financing activities	��	��	��	��	��	��
Proceeds from long-term debt	��	��	��3,000��	��-��	��3,000��	��-��
Repayment of long-term indebtedness	��	��	��(111)��	��(115)��	��(205)��	��(220)��
Treasury shares purchased	��	��	��(910)��	��-��	��(910)��	��-��
Dividends paid	��	��	��(2,981)��	��(995)��	��(5,765)��	��(1,790)��
��	��	��	��(1,002)��	��(1,110)��	��(3,880)��	��(2,010)��
(Decrease) Increase in cash	��	��	��(2,205)��	��4,500��	��(2,443)��	��6,296��
Cash and cash equivalents at beginning of period	��	��	��53,403��	��39,337��	��53,641��	��37,541��
Cash and cash equivalents at end of period	��	��	��51,198��	��43,837��	��51,198��	��43,837��

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

ABOUT AUTOCANADA

AutoCanada is one of Canada's largest multi-location automobile
dealership groups, currently operating 24 wholly owned franchised
dealerships and 2 dealership investments 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.

��

SOURCE: AutoCanada Inc.

For further information:

Jeff Christie, CA
Vice-President, Finance
Phone:�� (780) 732-7164 Email:��jchristie@autocan.ca

Canada Dividend Investor

Thursday, August 9, 2012

ACQ - <span class="din">AutoCanada Inc. reports all-time record quarterly profit and announces an increase in its quarterly dividend:</span> (CAD 0.16)

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