Uni-Select Announces Strong Q3 2015 Financial Results
- $276.2 million in sales, up 4.0% organically; - EBITDA margin reaches 9.4%; - Net earnings up 6.1% to $15.7 million, while EPS reaches $0.73, up 4.3%; - Adjusted EPS, once converted to Canadian dollars, is up 18.8%; - First full-quarter completed without the assets of Uni-Select USA, Inc. and Beck/Arnley Worldparts, Inc. since the closing of the sale transaction on June 1, 2015.
(firmenpresse) - BOUCHERVILLE, QUEBEC -- (Marketwired) -- 10/28/15 -- Unless otherwise indicated in this press release, all amounts are expressed in US dollars.
Uni-Select Inc. (TSX: UNS), a leading distributor of automotive products in Canada and parent of FinishMaster, Inc., a leading distributor of paint and related products in the United States, today reported solid financial results with increased profitability for the third quarter ended September 30, 2015.
"I am very pleased with the performance displayed by our automotive and paint and related products businesses in the third quarter and particularly delighted that both sectors are delivering healthy organic growth, said Henry Buckley, President and Chief Executive Officer of Uni-Select." We now turn to the fourth quarter with confidence that our continued focus on growth initiatives, accretive acquisitions and our commitment to the continued expansion of a network of corporate stores will all contribute to our successes in the months ahead."
The 2015 results in dollars vary compared to last year''s figures, since the 2015 nine-month period includes five months of operations from the net assets of Uni-Select USA, Inc. and Beck/Arnley Worldparts, Inc., sold on June 1, 2015.
THIRD QUARTER RESULTS
(All percentage increases and decreases represent year-over-year changes for the third quarter of 2015 compared to the third quarter of 2014, unless otherwise noted.)
Consolidated sales for the third quarter reached $276.2 million, a 40.6% decrease mainly due to the sale of the net assets of Uni-Select USA, Inc. and Beck/Arnley Worldparts, Inc. and to a weaker Canadian dollar. The decline was partly compensated by additional sales from recent acquisitions and organic growth. On an organic basis, consolidated sales grew 4.0%, fuelled namely by the recruitment of new customers in the paint and related products segment and by the success of the Corporation''s fill rate commitment to its customers in the automotive products segment.
The Corporation generated an EBITDA of $25.9 million (including restructuring and other charges of $0.1 million resulting from the relocation of certain stores), compared to $29.9 million last year, while adjusted EBITDA reached $26.0 million from $31.4 million last year. The EBITDA margin and adjusted EBITDA margin grew to a solid 9.4%, fuelled by a combination of organic growth across both segments as well as by the recent accretive acquisitions.
Net earnings grew by 6.1% to $15.7 million from $14.8 million last year, while adjusted earnings grew slightly by 0.4%. EPS and adjusted EPS are $0.73 ($0.70 and $0.74 respectively in 2014).
As indicated above, the Corporation''s results are presented in US dollars. Once converted to Canadian dollars, adjusted earnings per share reached C$0.95 for the third quarter of 2015, up 18.8% compared to C$0.80 for the same quarter in 2014.
Segmented Results
Sales for the automotive products segment declined to $114.2 million, from $316.5 million in the prior year. Excluding the impact of the net assets sold and the weaker Canadian dollar, this alone accounted for 17.5% of the decrease, sales decreased by 9.3% compared to 2014, partly offset by organic growth and sales from recent acquisitions. Segment organic sales grew 4.4% in the third quarter, driven by an increased focus on customer needs through enhanced product offering and pricing increases. EBITDA for the automotive products segment decreased to $9.1 million in the third quarter, from $15.8 million last year, while adjusted EBITDA decreased to $9.1 million from $17.3 million in 2014. The EBITDA margin and adjusted EBITDA margin both reached 8.0%, up 3.0 and 3.5 points from 5.0% and 5.5% respectively in 2014.
The paint and related products segment recorded sales of $162.0 million, up 8.8% from 2014, or 3.8% organically as a result of the recruitment of new customers. Segment EBITDA reached $18.3 million, up 15.1% from $15.9 million last year, while adjusted EBITDA grew 15.7% to $18.4 million from $15.9 million last year. The segment EBITDA margin and adjusted EBITDA margin reached 11.3% and 11.4% respectively, up 0.6 and 0.7 point from last year. This performance is namely attributable to enhanced gross margins resulting from purchases made in advance of pricing increases (partially offset by an unfavorable customer mix due to the growth of large national accounts with different buying conditions), improved fixed expenses coverage in relation to organic growth, as well as accretive business acquisitions.
NINE-MONTH PERIOD RESULTS
(All percentage increases and decreases represent year-over-year changes for the nine-month period of 2015 compared to the nine-month period of 2014, unless otherwise noted. The 2015 nine-month period results include five months of operations from the net assets sold.)
Consolidated sales for the first nine months of 2015 decreased by 19.2% to $1,096.2 million, representing an increase of 0.2% when excluding the impact of the sales from the net assets sold, a performance explained by the same factors as for the third quarter. On an organic basis, sales grew 3.2% in the first nine months of the year.
The Corporation recorded a negative EBITDA of $77.3 million for the first nine months of 2015, compared to an EBITDA of $78.2 million last year. This is explained by non recurring charges of $150.8 million consisting of impairment and transaction charges in connection with the sale of the net assets of the US automotive products distribution business activities and restructuring charges to rightsize the corporate operations recorded over the course of the first semester. Adjusted EBITDA for the first nine months of the year decreased by 8.4%, while the adjusted EBITDA margin increased by 0.8 points, from 6.2% to 7.0%.
The Corporation recorded a net loss of $54.2 million in the first nine months of the year while adjusted earnings grew 9.2% to $45.8 million ($2.14 on a per share basis) from $41.9 million ($1.97 on a per share basis) for the corresponding period last year.
As indicated above, the Corporation''s results are presented in US dollars. Once converted to Canadian dollars, adjusted earnings per share for the nine-month period amount to C$2.71 compared to C$2.16 in 2014, up 25.5%.
Segmented Results
Prior to their disposal on June 1, 2015, the net assets sold over the course of the first half of the year were included in the automotive products group for segmented reporting. Accordingly, sales of the automotive products segment were down 31.8% for the first nine months of 2015 to $631.0 million, or down 8.9% excluding the impact of net assets sold, mainly related to the impact of the weaker Canadian dollar and partially compensated by the organic growth and sales from recent acquisitions. On an organic basis, sales grew 1.6% in the first nine months of the year. A negative segment EBITDA of $116.9 million was recorded in the first nine months of the year, down from $39.4 million last year, a decline explained by impairment and transaction charges. Adjusted EBITDA decreased to $29.8 million, a performance mainly attributable to the inclusion of five months of lower productivity of the net assets sold on June 1, 2015.
The paint and related products segment recorded sales of $465.3 million in the first nine months of the year, up 7.8%. Segment sales grew 4.6% organically, driven mainly by the recruitment of new customers. Segment EBITDA reached $53.6 million, up 18.7% from 2014, while adjusted EBITDA reached $54.1 million, up 19.7%, mainly attributable to the sales leverage and accretive business acquisitions. Segment EBITDA margin and adjusted EBITDA margin reached 11.5% and 11.6% respectively, up from 10.5% for the corresponding period last year.
DIVIDEND
The Uni-Select Board of Directors declared a dividend of C$0.16 per share payable on January 19, 2016 to shareholders of record on December 31, 2015. This dividend is an eligible dividend for tax purposes.
CONFERENCE CALL
Uni-Select will host a conference call to discuss its third quarter results for 2015 on October 29, 2015 at 3 PM (EDT). To join the conference, dial 1 866 696-5910 followed by 2686549.
A replay of the conference call will be available from 5 PM (EDT) until 11:59 PM (EST) on November 9, 2015. To access the replay, dial 1 800 408-3053 followed by 7308519.
ABOUT UNI-SELECT
Uni-Select is a leader in the Canadian distribution of automotive products and its FinishMaster, Inc. subsidiary is a leading independent automotive paint distributor in the United States. Over 2,400 employees spread across 13 distribution centres and over 198 corporate stores are dedicated to offering advanced solutions and first-rate service to customers in order for them to benefit from a positively superior experience. Uni-Select''s strong network and proficient programs contribute to the success of countless auto service shops and collision centres as well as more than 1,155 independent wholesalers in North America. Its Canadian banner programs made up of Auto Parts Plus®, Auto-Plus®, Bumper to Bumper®, Auto Select®, Uni-Pro®, SAX and Carrossier ProColor® regroup over 3,900 shops and stores. 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 may include some forward-looking information, which could include certain risks and uncertainties which may cause the final results to be significantly different from those listed or implied within this news release. Such risks and uncertainties may include, for example, the impact of the transaction on the business of Uni-Select and certain strategic benefits expected to result from the transaction. 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 Management Report, the unaudited interim financial statements and the accompanying notes for the Third Quarter of 2015 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.
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.
Organic growth - This measure consists of quantifying the increase in pro forma consolidated sales between two given periods, excluding the impact of acquisitions, sales and disposals of stores, net assets sold, exchange-rate fluctuations and when necessary, the variance in the number of billing days. Determining the rate of organic growth, based on findings that Management regards as reasonable, may differ from the actual rate of organic growth.
EBITDA - This measure represents net earnings excluding finance costs, depreciation and amortization, equity income and income taxes. 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.
Adjusted EBITDA, adjusted earnings and adjusted earnings per share - Management uses adjusted EBITDA, adjusted earnings and adjusted earnings per share to assess EBITDA, net earnings and net earnings per share from operating activities, excluding certain adjustments, net of income taxes (for adjusted earnings and adjusted earnings per share), which may affect the comparability of the Corporation''s financial results. Management considers that these measures are more representative of the Corporation''s operational performance and more appropriate in providing additional information. These adjustments include, among other things, restructuring and other charges, impairment and transaction charges related to the sale of net assets, the non-capitalizable costs related to the development and implementation of the ERP system and costs related to the closure and disposal of stores. The exclusion of these items does not indicate that they are non-recurring.
Adjusted EBITDA margin - The adjusted EBITDA margin is a percentage corresponding to the ratio of adjusted EBITDA to sales.
Free cash flows - This measure corresponds to the cash flows from operating activities according to the consolidated statements of cash flows adjusted for the following items: changes in working capital items, equity income, acquisitions of property and equipment and difference between amounts paid for post-employment benefits and current year expenses. Uni-Select considers the free cash flows to be a good indicator of financial strength and of operating performance because it shows the amount of funds available to manage growth in working capital, pay dividends, repay debt, reinvest in the Corporation and capitalize on various market opportunities that arise. The free cash flows exclude certain variations in working capital items (such as trade and other receivables, inventory and trade and other payables) and other funds generated and used according to the statement of cash flows. Therefore, it should not be considered as an alternative to the consolidated statement of cash flows, or as a measure of liquidity, but as additional information.
Total net debt - This measure consists of long-term debt, including the portion due within a year, net of cash.
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 $0.04 on earnings per share for the quarter compared to the same period of 2014, while the effect for the nine-month period was $0.08 compared to the same period last year.
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CONSOLIDATED STATEMENTS OF EARNINGS
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Contacts:
Louis Juneau
Chief Legal Officer and Corporate Secretary
450 641-6922
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Datum: 28.10.2015 - 17:12 Uhr
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News-ID 1395226
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