Another Solid Quarter and Year for Uni-Select
- $427 million in sales in Q4 (up 0.4% and 1.3% organically) - 6.4% EBITDA margin in Q4 (6.5% adjusted EBITDA margin, up 70 bps) - $0.54 in EPS in Q4 (up 12.5% and $0.63 in adjusted EPS, up 1.6% or C$0.72 in adjusted EPS, up 11% when converted into Canadian dollars) - $22 million in free cash flow in Q4 (up 47% or $7 million) - Subsequent to the end of the fourth quarter, announcement of an agreement to sell Uni-Select USA, Inc. and Beck/Arnley Worldparts, Inc. to Icahn Enterprises L.P. for a cash consideration of $340 million
(firmenpresse) - BOUCHERVILLE, QUEBEC -- (Marketwired) -- 02/12/15 -- Unless otherwise indicated in this press release, all amounts are expressed in US dollars.
Uni-Select Inc. (TSX: UNS), a major automotive aftermarket product distributor with activities across North America, today reported solid EBITDA, EBITDA margin and net earnings growth for the fourth quarter and the fiscal year ended December 31, 2014.
Overall sales grew by 0.4% or 1.3% organically for the quarter. EBITDA grew a strong 37.6%, while net earnings increased by 11.4% in the fourth quarter as a result of savings derived from the Corporation''s Action Plan. Notwithstanding expenses related to network optimization, adjusted EBITDA grew by 13.9% this quarter, resulting in an adjusted EBITDA margin of 6.5%.
Sales for Fiscal 2014 declined 0.2%, EBITDA grew a robust 84.4% compared to 2013 and net earnings more than doubled from the previous year. Adjusted EBITDA gained 10.1%, resulting in an adjusted EBITDA margin of 6.2% for 2014, up from 5.7% last year.
I am pleased by our fourth quarter results and by the systematic profitability increase recorded quarter after quarter since the implementation of the Action Plan 19 months ago. This performance is a clear illustration of the quality work accomplished by our team and of the soundness of our strategy," said Richard G. Roy, President and Chief Executive Officer of Uni-Select.
"We enter Fiscal 2015 with the firm commitment to reinforce our recognition as the partner of choice for our customers and intend to do so by taking advantage of our improved financial fundamentals, a broadened product assortment, a better-performing inventory and an overall lighter cost structure. Our recent transaction announcement reflects our strong commitment to our automotive parts and paint distribution activities in Canada and our automotive paint distribution activities in the US through FinishMaster. This will allow us to further accelerate growth both organically and through acquisitions as both markets present various opportunities for future development," added Mr. Roy.
FOURTH QUARTER RESULTS
(All percentage increases and decreases represent year-over-year changes for the fourth quarter of 2014 compared to the fourth quarter of 2013, unless otherwise noted.)
Uni-Select recorded sales of $427 million in the fourth quarter of 2014 and organic sales growth of 1.3% over the solid 5.5% comparable organic growth recorded in the fourth quarter of 2013. Sales derived from recent acquisitions were offset by the negative impact of the declining Canadian dollar and sales lost from store closures under the Corporation''s Action Plan. Sales of the US operations reached $311 million, up 2.2% over last year or 0.4% on an organic basis. Canadian operations reported $116 million in sales in the same period, down 4.1% over 2013 mainly due to the impact of a lower Canadian dollar, partially compensated by 3.6% in organic growth.
EBITDA for the fourth quarter reached $27 million, compared to $20 million last year, representing a 37.6% increase. Adjusted EBITDA grew by 13.9% while the adjusted EBITDA margin increased to 6.5% compared to 5.8% last year. The increase is mainly attributable to Action Plan related savings of $3 million, a tight control over expenses and accretive acquisitions. These favourable items were partially offset by unfavorable distribution channel and customer mix, lower special vendor rebates and additional marketing expenses to promote sales.
As indicated above, the Corporation''s results are presented in US dollars. Once converted to Canadian dollars, adjusted earnings per share reached C$0.72 for the fourth quarter, up 11% compared to C$0.65 in 2013.
Over the course of the fourth quarter, total net debt increased by $39 million, including $45 million for the convertible debentures following the announcement of their redemption in December and $1 million for acquisitions. Excluding the convertible debentures, the total net debt would have decreased by $7 million.
TWELVE-MONTH PERIOD RESULTS
(All percentage increases and decreases represent year-over-year changes for the twelve-month period of 2014 compared to the twelve-month period of 2013, unless otherwise noted.)
Uni-Select recorded an overall 0.2% decline in sales for the twelve months of 2014 to $1,784 million. The declining Canadian dollar combined with sales lost from planned store closures under the Action Plan impacted revenues by $71 million and more than offset the combined favourable impact of the 1.9% organic growth and additional revenue derived from recent acquisitions.
Sales of the US operations reached $1,305 million, up 0.8% compared to last year, with 1.1% in organic growth. Canadian operations recorded $480 million in sales in the same period, down 2.9% over 2013, but up 4.0% organically.
EBITDA grew from $57 million in 2013 to $105 million this year. 2013 results included $35 million in restructuring charges in relation to the Action Plan which was reduced by $2 million in 2014 due to changes in estimates. Adjusted EBITDA grew by 10.1% while the adjusted EBITDA margin increased to 6.2% from 5.7% last year. Savings derived from the Action Plan accounted for $16 million in 2014 and $29 million since its implementation in 2013.
In 2014, the Corporation generated $124 million in cash from operating activities. As at December 31, 2014, the Corporation''s outstanding net debt including the convertible debentures stood at $260 million, down $17 million from December 31, 2013, while its funded debt to adjusted EBITDA ratio reached 2.3 times, down notably from 2.7 times last year. Excluding the convertible debentures, the funded debt to adjusted EBITDA ratio would have been 1.9 times. The Corporation intends to reimburse almost all of its debt using the proceeds of the transaction upon its closing in the first half of Fiscal 2015.
For Fiscal 2014, adjusted earnings per share converted to Canadian dollars amounted to $2.87 compared to $2.44 in 2013, a robust 17% increase.
SUBSEQUENT EVENT
On February 9, 2015 the Corporation entered into an agreement for the sale of substantially all of the assets of Uni-Select USA, Inc. and Beck/Arnley Worldparts, Inc. for cash proceeds of approximately $340 million. In the first quarter of 2015, the Corporation expects to incur an estimated after-tax loss ranging from $80 million to $100 million in connection with the sale of the net assets of the business activities and other related charges of which approximately $20 million in cash outlays are expected to be required. The loss will reflect transaction-related costs, termination of service contracts, restructuring charges, write-down of intangibles (mostly IT systems) and write-down of a portion of the goodwill. This transaction is expected to close during the first half of 2015 and is subject to customary closing conditions, including obtaining regulatory approvals.
DIVIDEND
Uni-Select''s Board of Directors declared a dividend of C$0.15 per share payable on April 21, 2015 to shareholders of record on March 31, 2015. This dividend is an eligible dividend for tax purposes.
CONFERENCE CALL
Uni-Select will host a conference call to discuss its fourth quarter and fiscal year 2014 results on February 12, 2015 at 3 PM (EST). To join the conference, dial 1 866 696-5910 followed by 2686549.
A replay of the conference call will be available until 11:59 PM (EST) on February 19, 2015. To access the replay, dial 1 800 408-3053 followed by 2123020. The conference call will also be archived on the Corporation''s website at uniselect.com.
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 5th largest distributor and the leading independent distributor of automotive paint and related products in North America. With its 5,300 employees, Uni-Select efficiently services a wide network of independent installers and wholesalers, including over 6,700 which operate under one of its banner programs in North America. Uni-Select is headquartered in Boucherville, QC 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.
ADDITIONAL INFORMATION
The Interim Management''s Discussion and Analysis, the unaudited interim financial statements and the accompanying notes for the Fourth Quarter of 2014 and the audited financial statements and the accompanying notes for Fiscal 2014 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 2014 Annual Report may also be found on these websites as well as other information related to Uni-Select.
Action Plan Financial Executive Summary
Internal strategic and operational plan (Action Plan) announced on July 11, 2013
(1) 19-month period
NON-IFRS FINANCIAL MEASURES
The information included in this press release contains certain measures that are consistent with IFRS. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other entities.
RECONCILIATION OF NON-IFRS MEASURES
The following table presents a reconciliation of EBITDA and adjusted EBITDA.
The following table presents a reconciliation of adjusted earnings and adjusted earnings per share.
The effect of the declining Canadian dollar was $0.01 on earnings per share for the quarter compared to the same quarter of 2013, while the effect for the twelve-month period was $0.06 compared to the same period last year.
CONSOLIDATED STATEMENTS OF EARNINGS
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
CONSOLIDATED STATEMENTS OF CASH FLOWS
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Contacts:
Source:
UNI-SELECT INC.
Contact:
Karine Vachon
Investor Relations and Communications Manager
450 641-6972
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Datum: 12.02.2015 - 10:08 Uhr
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