Uni-Select Announces Strong 2013 Third Quarter Results
- 2.8% organic sales growth - 21.9% adjusted EBITDA growth - 20.4% adjusted EBITDA margin growth to 6.5%, from 5.4% - 32.1% adjusted earnings per share growth at $0.70 - $23 million debt reduction
(firmenpresse) - BOUCHERVILLE, QUEBEC -- (Marketwired) -- 10/31/13 -- Uni-Select Inc. (TSX: UNS), a major automotive aftermarket product distributor with activities in Canada and the United States, today reported strong results for the third quarter ended September 30, 2013, which saw growth in consolidated sales, EBITDA, net earnings and earnings per share. This performance reflects the effectiveness of the Corporation's various sales initiatives, overall efficiency gains as well as improved service levels made possible by the ongoing implementation of a new ERP software. These results were also driven by favourable gains realized under Uni-Select's internal strategic and operational plan (Action Plan), announced on July 11, 2013.
"I am very pleased by our third quarter results and by the performance displayed by our US and Canadian activities. Our team was able to deliver positive organic sales growth by recruiting new customers, supporting existing customers with their business expansion and signing distribution agreements with large collision centres and multi-shop owners for paint products. Our team's ability to deliver significant 20.4% adjusted EBITDA margin increase, to 6.5% from 5.4% last year, illustrates that the aggressive Action Plan in place is starting to yield tangible results," said Richard G. Roy, President and Chief Executive Officer of Uni-Select.
"As we enter the fourth quarter, we will continue to improve our services and product offering to remain a partner of choice for our independent jobbers. We will remain focused on delivering growth and continuing the implementation of our Action Plan to further improve the profitability of our distribution network in the United States. This approach should enable us to deliver healthy free cash flows and to continue to make strategic investments to strengthen our leadership position in the automotive aftermarket product distribution," added Mr. Roy.
THIRD QUARTER RESULTS
(All percentage increases and decreases represent year-over-year changes for the third quarter of 2013 compared to the third quarter of 2012, unless otherwise noted.)
Uni-Select generated an overall 1.6% sales increase in the third quarter to $465 million, fuelled by an overall 2.8% growth of organic sales. Sales of the US operations reached $334 million, up 1.8% organically. Canadian operations delivered $130 million in sales in the same period, up 5.3% organically. The overall positive organic growth throughout the system is attributable to the good performance of our sales initiatives which resulted into the recruitment of new customers. A more stable ERP system and increased efficiencies also allowed the Corporation to greatly improve service level. This had a positive impact. In summary, overall organic growth exceeded the 1.6% decline in sales resulting from store closures.
The Corporation's adjusted EBITDA margin grew by 20.4% in the third quarter to 6.5%, compared to 5.4% last year. The increase mainly resulted from cost savings initiatives under the Corporation's Action Plan - mostly productivity and headcount reductions - as well as from savings derived from the closure of non-profitable locations. These combined initiatives, net of the reduction in gross profit from closures, resulted in an increase in EBITDA of $3.3 million in the third quarter, representing annualized cost savings of approximately $13 million. Organic growth also contributed to the EBIDTA margin.
Under the Corporation's Action Plan unveiled on July 11, 2013, 18 corporate stores and three warehouses were closed in the third quarter. Sales volumes saved from these closures were higher than expected as a result of strong internal execution. The Corporation also benefitted from an extensive support and a strong collaboration from its suppliers in coordinating inventory movements related to distribution centres openings and closures. Subsequent to quarter-end, the Corporation divested three of its stores to one of its customers.
In the third quarter, the Corporation generated $38 million in cash from operating activities, of which $23 million was applied towards debt reimbursement. The remaining $15 million was applied towards dividend payments, share repurchases and capital investments - for equipment, fleet renewal and ERP development. As of September 30, 2013, the Corporation's outstanding net debt stood at $262 million, down 17% year-over-year.
YEAR-TO-DATE RESULTS
(All percentage increases and decreases represent year-over-year changes for the first nine months of 2013 compared to the first nine months of 2012, unless otherwise noted.)
In the first nine months of the years, sales totalled $1.4 billion, down 1.2%, while organic sales growth reached 0.7%. In the US, sales totalled $989 million, with an organic sales growth of 0.7%. Sales from the Canadian operations totalled $373 million, including an organic sales growth of 0.9%. Sales for the nine-month period were impacted by a decrease of 1.3% related to the store closures in line with the Action Plan that was not completely offset by the organic growth recorded in the second and third quarters. Adjusted EBITDA margin for the first nine months of the year was slightly below last year's at 5.6% vs. 6% for the corresponding period in 2012.
This performance is generally explained by a softer first quarter, impacted by an unfavourable economic environment and unfavourable weather conditions, as well as by temporary disruptions in the deployment of the Corporation's ERP.
Since the beginning of Fiscal 2013, the Corporation generated $88 million in cash from operating activities, of which $48 million were used to repay bank debt. The Corporation also repurchased 263,301 common shares for a cash consideration of $6 million.
DIVIDEND
Uni-Select's Board of Directors declared a dividend of CAD$0.13 per share payable on January 22, 2014 to shareholders of record on December 31, 2013. This dividend is an eligible dividend for tax purposes.
CONFERENCE CALL
Uni-Select will host a conference call to discuss its 2013 third quarter results on November 1, 2013 at 8:30 AM (EDT). To join the conference, dial 1 888 789-9572 followed by 1697957.
A replay of the conference call will be available until 11:59 PM on Friday November 8, 2013. To access the replay, dial 1 800 408-3053 followed by 2789105.
ABOUT UNI-SELECT
Founded in 1968, Uni-Select is a major distributor of replacement parts, equipment, tools, accessories, paint and related products for motor vehicles in North America. Leader in the Canadian industry, Uni-Select is the 6th largest distributor in the United States and the leading independent distributor of automotive paint and related products in the country. With its 5,700 employees, Uni-Select efficiently services a wide network of independent installers and wholesalers, including over 6,200 that operate under one of its banner programs in North America. Uni-Select is headquartered in Boucherville and its shares are traded on the Toronto Stock Exchange (TSX) under the symbol UNS.
FORWARD-LOOKING INFORMATION
The information provided in this press release includes some forward-looking information, which includes certain risks and uncertainties, including risks relating to the implementation of the Action Plan resulting from the strategic review process, which may cause the final results to be significantly different from those listed or implied within this news release. For example, the foregoing estimates of cost and inventory reductions may be considered forward-looking information and are based upon certain key assumptions, including (i) the closure, sale or consolidation of the number of stores and distribution centres, and related reduction of headcounts, as planned and within the timeframe contemplated by the Action Plan and (ii) the timely completion of all other components of the Action Plan as planned. Uni-Select cautions that assumptions used to prepare the foregoing estimates, although reasonable at the time they were made, may prove to be incorrect or inaccurate. The foregoing factors could therefore cause the actual cost and inventory reductions to be derived under the Action Plan to differ materially from the amounts set forth in the foregoing estimates. For additional information with respect to risks and uncertainties, refer to the Annual Report filed by Uni-Select with the Canadian securities commissions. The forward-looking information contained herein is made as of the date of this press release, and Uni-Select does not undertake to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.
Unless otherwise indicated in this press release, all amounts are expressed in US dollars.
NON-IFRS FINANCIAL MEASURES
The following terms do not have any standardized meaning according to the International Financial Reporting Standards (IFRS). As a result, they are therefore unlikely to be comparable to similar measures presented by other corporations.
(1) "EBITDA" represents operating profit before finance costs, depreciation and amortization, restructuring charges, write-off and others, equity income, income taxes and net earnings attributable to non-controlling interests. This measure is a financial indicator of a corporation's ability to service and incur debt. It should not be considered by an investor as an alternative to sales or net earnings, as an indicator of operating performance or cash flows, or as a measure of liquidity, but as additional information.
(2) "Adjusted EBITDA" is used to assess adjusted EBITDA, adjusted earnings and adjusted earnings per share to assess EBITDA from operating activities, excluding certain adjustments which may affect the comparability of the Corporation's financial results. Management is of the view that these measures are more representative of the Corporation's operational performance and more appropriate in providing additional information.
(3) "Adjustments" are unusual incurred costs that Management regards as not being characteristic or representative of the Corporation's regular operations. They include, amongst others, the non-capitalizable costs related to the development and implementation of the ERP system, costs related to the closure and disposal of stores, restructuring charges, write-off of assets and others. The exclusion of these items does not indicate that they are non-recurring.
(4) "Organic growth" represents the increase in pro forma consolidated sales between two given periods, excluding the impact of acquisitions, sales and disposals of stores, exchange-rate fluctuations and, when necessary, the variance in the number of billing days.
(5) "Total net debt" consists of long-term debt before instalments including the portion due within a year (as shown in note 12 of the 2013 third quarter financial statements) net of cash.
ADDITIONAL INFORMATION
The Management Report, the unaudited financial statements and the accompanying notes for the Third Quarter of 2013 are available in the "Investors" section on the Corporation's website at uniselect.com as well as on SEDAR at sedar.com. The Corporation's Annual Report may also be found on these websites as well as other information related to Uni-Select, including its Annual Information Form.
Action Plan Financial Executive Summary
Internal strategic and operational plan (Action Plan) announced on July 11, 2013
Contacts:
Source:
UNI-SELECT INC.
Contact:
Karine Vachon
Investor Relations and Communications Manager
450 641-6972
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 31.10.2013 - 15:36 Uhr
Sprache: Deutsch
News-ID 1278334
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
BOUCHERVILLE, QUEBEC
Phone:
Kategorie:
Parts and Accessories
Anmerkungen:
Diese Pressemitteilung wurde bisher 306 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Uni-Select Announces Strong 2013 Third Quarter Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
Uni-Select Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
