Canada Dividend Investor: ACQ - <span class="simulate_din_font">AutoCanada Inc. announces record fourth quarter and record annual financial results for the period ended December 31, 2011:</span> (CAD 0.14)

Company: Autocanada Inc
Stock Name: ACQ
Amount: CAD 0.14
Announcement Date: 22/03/2012
Record Date: 27/02/2012

Dividend Detail:

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 /CNW/ - 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

May 31, 2011

June 15, 2011

��

995

August 31, 2011

September 15, 2011

��

1,988

November 30, 2011

December 15, 2011

��

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

��

# of same store dealerships ³

��

# 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.

��

For further information:

Jeff Christie, CA

Vice-President, Finance

Phone:�� (780) 732-7164�� Email:��jchristie@autocan.ca

Canada Dividend Investor

Thursday, March 22, 2012

ACQ - <span class="simulate_din_font">AutoCanada Inc. announces record fourth quarter and record annual financial results for the period ended December 31, 2011:</span> (CAD 0.14)

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