EDMONTON, AB, July 2, 2024
/CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ),
a multi-location North American automobile dealership group,
announced today that its lenders under the Company's syndicated
credit facility have agreed to increase to the Company's maximum
permitted Total Net Funded Debt to EBITDA ratio from 4.00:1.00 to
4.50:1.00 for the period from June 28, 2024 to
September 29, 2024. After
September 29, 2024, the Company's maximum
permitted Total Net Funded Debt to EBITDA Ratio will revert to
4.00:1.00.
This is a precautionary measure taken by the Company and the
lenders given the ongoing CDK outage and the unknown impact it may
have on the financial results of the Company.
About AutoCanada
AutoCanada is a leading North
American multi-location automobile dealership group currently
operating 85 franchised dealerships, comprised of 28 brands, in
eight provinces in Canada as well
as a group in Illinois, USA.
AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa
Romeo, Chevrolet, GMC, Buick,
Cadillac, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi,
Volkswagen, Kia, Mazda, Mercedes-Benz, BMW, MINI, Volvo, Toyota,
Lincoln, Acura, Honda and Porsche
branded vehicles. In addition, AutoCanada's Canadian Operations
segment also currently operates three used vehicle dealerships and
one used vehicle auction business supporting the Used Digital
Division, 13 RightRide division locations, and 11 stand-alone
collision centres within our group of 28 collision centres. In
2023, our dealerships sold approximately 100,000 vehicles and
generated revenue in excess of $6 billion.
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", "plan", "seek", "may", "intend",
"likely", "will", "believe" and similar expressions) are not
historical facts and are forward looking. In particular, this press
release contains forward-looking statements with respect to the
impact of the CDK outage.
The forward-looking statements included in this press release
are not guarantees of future performance and should not be unduly
relied upon. Readers are cautioned that forward-looking statements
are based on current expectations, estimates and projections that,
by their nature, forward-looking statements involve a number of
known and unknown risks and uncertainties, which could cause actual
results to differ materially from those anticipated and described
in the forward-looking statements.
AutoCanada cautions that the foregoing list of assumptions,
risks and uncertainties is not exhaustive. The Company's Annual
Information Form and other documents filed with securities
regulatory authorities (accessible through the SEDAR website at
www.sedarplus.com) describe the risks, material assumptions and
other factors that could influence actual results and which are
incorporated herein by reference. The forward-looking statements
contained in this press release speak only as of the date hereof
and AutoCanada assumes no obligation to publicly update or revise
them to reflect new events or circumstances, except as may be
required pursuant to applicable securities laws.
Additional information about AutoCanada is available at
www.sedarplus.com and the Company's website at www.autocan.ca.
SOURCE AutoCanada Inc.