Uni-Select reports double-digit growth for sales and network expansion in Q4 and 2016(1)
(firmenpresse) - BOUCHERVILLE, QUEBEC -- (Marketwired) -- 02/08/17 --
Uni-Select Inc. (TSX: UNS) today reported its financial results for the fourth quarter ended December 31, 2016.
"We are pleased with our sales and earnings growth in the quarter. In Canada, we returned to positive organic growth with the Prairies strengthening. Total sales of FinishMaster US were up 17.7%; excluding the impact of the product line changeover, organic sales would have been approximately 4.1%." said Henry Buckley, President and Chief Executive Officer of Uni-Select. "We continue to make great progress building the business at FinishMaster US, and expanding our coverage of the market. In Canada, we are investing in the future, building the BUMPER TO BUMPER® brand, for both independent customers and corporates stores, as well as expanding the newly launched FINISHMASTER® brand nationally. We continue to be highly committed to building our business for the long term through balanced profitable growth and the expansion of both networks." added Henry Buckley.
(The 2016 results in dollars vary compared to last year''s figures, since the twelve-month period of 2015 included five months of operations from the net assets of Uni-Select USA, Inc. and Beck/Arnley Worldparts, Inc., sold on June 1, 2015 ("sale of the net assets").)
For further information about the Corporation''s use of the non-IFRS measures identified in this press release, refer to "Non-IFRS financial measures" and "Reconciliation of non-IFRS measures" sections.
FOURTH QUARTER RESULTS
Consolidated sales for the fourth quarter were $291.0 million, a 12.3% increase, mainly driven by the sales generated from recent business acquisitions, for the most part in the US, representing an increase of 15.3%. On an organic basis, consolidated sales decreased by 1.1%, mainly due to the product line changeover in the Paint and Related Products (US) segment, and partially compensated by the performance of the Western provinces in the Automotive Products (Canada) segment, which regained some strength. Excluding the impact of the product line changeover, consolidated organic growth would have been approximately 2.8%.
The Corporation generated an EBITDA of $24.6 million for the fourth quarter of 2016, compared to $24.0 million last year. The adjusted EBITDA margin grew to 8.7%, up 100 bps compared to 2015. EBITDA margin enhancement was driven by a combination of optimized buying conditions as well as reduced bonus and other incentive plans following the rightsizing of the corporate office. These factors were partially offset by negative synergies following the sale of net assets, higher professional fees notably for the acquisitions and integration-related costs, and ongoing investments related to the corporate stores initiatives.
Net earnings were $12.7 million compared to $13.9 million last year. Once adjusted for non-recurring items, earnings were 18.3% better than last year and reached $13.1 million and adjusted earnings per share grew by 19.2% from $0.26 in 2015 to $0.31.
Cash flow from operating activities generated an additional $72.2 million in the fourth quarter of 2016 compared to 2015, mainly from additional vendor financing activities and increased operating income.
Segmented Results
The Paint and Related Products (US) segment recorded sales of $180.8 million, up 17.7% from 2015, strengthened by the recent business acquisitions. The negative organic growth of 2.5% is mainly due to the implementation of a product line changeover. Excluding this impact, organic growth would have been approximately 4.1%. The segment EBITDA margin and adjusted EBITDA margin were 12.0%, up 130 bps from last year''s adjusted EBITDA margin. The improvement is a direct result from the optimized buying conditions, partially offset by an evolving revenue mix, acquisition and integration related costs as well as lower cost absorption due to the negative organic growth.
Sales for the Automotive Products (in Canada for 2016) segment were up 4.3% to $110.2 million, from $105.7 million in 2015, mainly driven by recent business acquisitions. Organic sales increased by 1.0% driven by the Western provinces and partially offset by a reduced volume from existing customers in relation to softer economic conditions in the rest of Canada. The EBITDA and adjusted EBITDA for this segment amounted to $5.5 million in the fourth quarter, compared respectively to $13.0 million and $7.1 million last year. The adjusted EBITDA margin decreased to 5.0% from 6.7% in 2015, attributable to a different revenue mix, ongoing investments required in relation to the corporate store initiative, including the BUMPER TO BUMPER branding, and integration costs, net of synergies, pertaining to recent business acquisitions.
TWELVE-MONTH PERIOD RESULTS
Consolidated sales for the twelve-month period were $1,197.3 million, a 11.7% decrease, mainly due to the sale of the net assets in 2015. Consolidated sales grew 13.4% compared to last year, once sales of net assets sold are excluded. Sales generated from recent business acquisitions representing $157.9 million or 15.0% exceeded the impact of the Canadian dollar on its conversion to US dollar, which penalized sales by $14.2 million or 1.4%. On an organic basis, consolidated sales grew by 0.2%, supported by existing customer growth and net customer recruitment in the Paint and Related Products (US) segment, which was partially offset by the product line changeover and the softness of the economic conditions in the Automotive Products (Canada) segment.
The Corporation generated an EBITDA of $106.8 million for the twelve-month period of 2016, compared to a negative EBITDA of $53.3 million last year affected by impairment and transaction charges related to the sale of net assets. The adjusted EBITDA margin grew to 9.0%, up 190 bps when compared to 2015. That enhancement was driven by the sale of net assets bearing a lower margin compared to the remaining operations, optimized buying conditions, reduced bonus and other incentives plans in relation to the rightsizing of the corporate office, as well as accretive business acquisitions. These factors were partially offset by negative synergies following the sale of net assets, ongoing investments related to the corporate stores initiatives as well as acquisitions and integration related costs.
Net earnings were $58.3 million compared to a net loss of $40.2 million last year which was affected by impairment and transaction charges related to the sale of net assets. Adjusted earnings amounted to $58.6 million, up 3.2% from last year, while adjusted earnings per share increased by 3.8% from $1.33 in 2015 to $1.38 as the benefits from recent business acquisitions compensated for the impact of the sale of net assets.
Cash flow from operating activities increased by $117.7 million compared to 2015, due to the benefit of additional vendor financing activities, lower investment in inventory, income tax refunds and higher operating income.
Segmented Results
The Paint and Related Products (US) segment recorded sales of $752.9 million, up 21.7% from 2015, strengthened by the recent business acquisitions. The organic growth of 1.1% is a direct result from the sales team efforts, which counteract the impact of the product line changeover. Excluding this impact, organic growth would have been approximately 3.8%. EBITDA and adjusted EBITDA for this segment amounted to $93.4 million for the twelve-month period compared, respectively, to $70.0 million and $70.4 million last year. The segment adjusted EBITDA margin reached 12.4%, up 100 bps from last year. This performance is notably attributable to optimized buying conditions and the contribution from recent accretive business acquisitions.
Sales for the Automotive Products segment were $444.5 million, compared to $736.6 million in the prior year. Sales increased by 1.6% compared to 2015, once sales of the net assets sold are excluded. Sales from recent business acquisitions exceeded the effect of the Canadian dollar which had a negative impact, on its conversion to US dollar, of $14.2 million on sales or 3.2%. Organic sales in Canada decreased by 1.1% in the twelve-month period due to a reduced volume from existing customers in relation to the softer economic conditions, delivery delays on some products and reduction in benefits from price increases compared to 2015. EBITDA and adjusted EBITDA were $26.6 million compared, respectively, to ($103.9 million) and $36.9 million in 2015. The adjusted EBITDA margin reached 6.0%, up 100 bps from 5.0% in 2015, an increase attributable to the weaker performance from the operations sold on June 1, 2015. The increase is partially offset by reduced fixed-cost absorption resulting from the negative organic growth, ongoing investments required in relation to the corporate store initiative, reduction in benefits from price increases compared to 2015 as well as acquisition and integration costs pertaining to recent business acquisitions.
DIVIDENDS
On February 8, 2017, the Uni-Select Board of Directors declared a dividend of C$0.085 per share payable on April 18, 2017 to shareholders of record on March 31, 2017. This dividend is an eligible dividend for tax purposes.
CONFERENCE CALL
Uni-Select will host a conference call to discuss its fourth quarter and twelve-month period results for 2016 on February 9, 2017 at 8:00 AM (EDT). To join the conference, dial 1 866 696-5910 followed by 9180682.
A recording of the conference call will be available from 10:00 AM (EDT) on February 9, 2017 until 11:59 PM (EDT) on February 20, 2017. To access the replay, dial 1 800 408-3053 followed by 9180682.
A live webcast of the quarterly results conference call will also be accessible through the " of our website at where a replay will also be archived. Listeners should allow ample time to access the webcast and supporting slides.
ABOUT UNI-SELECT
Uni-Select is a leader in the distribution of automotive refinish and industrial paint and related products in North America, as well as a leader in the automotive aftermarket parts business in Canada. In Canada, Uni-Select supports over 16,000 automotive repair and collision repair shops through a growing national network of more than 1,100 independent customers and corporate stores, many of which operate under the Uni-Select BUMPER TO BUMPER®, AUTO PARTS PLUS® AND FINISHMASTER® store banner programs. It also supports over 3,900 shops and stores through its automotive repair/installer shop banners, as well as through its automotive refinish banners. In the United States, Uni-Select, through its wholly-owned subsidiary FinishMaster, Inc., operates a national network of automotive refinish corporate stores under the FINISHMASTER banner which services a network of over 30,000 customers annually, of which it is the primary supplier to over 6,000 collision repair centre customers. Uni-Select is headquartered in Boucherville, Quebec, Canada, 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. 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''s Discussion and Analysis (MD&A), consolidated financial statements and related notes for the year 2016 are available in the "Investors" section on the Corporation''s website at as well as on SEDAR at . 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.
RECONCILIATION OF NON-IFRS MEASURES
The information included in this Press release contains certain measures that are inconsistent 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. This measure enables Uni-Select to evaluate the intrinsic trend in the sales generated by its operational base in comparison with the rest of the market. 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 and costs related to the closure and disposal of stores. The exclusion of these items does not indicate that they are non-recurring.
EBITDA margin and adjusted EBITDA margin - The EBITDA margin is a percentage corresponding to the ratio of the EBITDA to sales. The adjusted EBITDA margin is a percentage corresponding to the ratio of adjusted EBITDA to sales.
Total net debt - This measure consists of long-term debt, including the portion due within a year, net of cash.
The following table presents a reconciliation of organic growth.
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 conversion effect of the Canadian dollar into US dollar had no impact on earnings per share for the quarter compared to the same period of 2015, while the effect for the twelve-month period was $0.02 compared to the same period last year.
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Contacts:
Eric Bussieres
Chief Financial Officer
450 641-6958
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Datum: 08.02.2017 - 17:57 Uhr
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News-ID 1485506
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