Uni-Select reports sales and EBITDA growth as well as network expansion in Q1
(firmenpresse) - BOUCHERVILLE, QUEBEC -- (Marketwired) -- 05/03/17 --
Uni-Select Inc. (TSX: UNS) today reported its financial results for the first quarter ended March 31, 2017.
"We are pleased with our ongoing initiatives, in particular, our ability to acquire and successfully integrate select companies into our network, benefiting our sales and EBITDA growth. Our Canadian business experienced solid organic sales growth during the quarter in the corporate stores as well as with our independent customers excluding one independent member loss. Total sales of FinishMaster US were impacted, as expected, by the product line changeover." said Henry Buckley, President and Chief Executive Officer of Uni-Select. "Our free cash flows for the quarter increased, and we continue to be focused on optimizing our business. We are highly committed to delivering balanced profitable growth for the long term, by building a solid foundation, implementing organic sales growth initiatives and through the expansion of both networks." added Henry Buckley.
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.
FIRST QUARTER RESULTS
Consolidated sales for the three-month period were $297.2 million, a 12.6% increase compared to the same quarter last year, driven by the sales generated mainly from recent US business acquisitions, resulting in additional sales of $44.5 million or 16.8%. The organic sales were affected, as expected, by the product line changeover in the FinishMaster US segment while the Canadian Automotive Group was affected by a loss of an independent member. Without these impacts, the organic growth would have been positive.
The Corporation generated an EBITDA of $23.2 million for the three-month period of 2017, compared to $21.7 million in 2016, an increase of 6.8%. The EBITDA margin decrease of 0.4% is attributable to higher stock-based compensation due to a share price appreciation, lower absorption of fixed costs in relation to the organic growth, and a different revenue mix. These factors were offset by optimized buying conditions, accretive business acquisitions, and lower information technology expenses.
Net earnings of $11.0 million decreased by 4.2% compared to the same quarter last year, and were impacted by additional amortization and finance costs related to recent business acquisitions.
Free cash flows increased to $22.2 million compared to $19.4 million in 2016, and are mainly related to improved operating income from accretive business acquisitions.
Segmented Results
FinishMaster US recorded sales of $199.7 million, up 15.2% from the same quarter in 2016, strengthened by the recent business acquisitions representing a growth of 23.7%. The product line changeover impacted sales by approximately 7.7%. EBITDA for this segment reached $23.3 million, up 12.4% from 2016. EBITDA margin decreased by 0.3%, the result of lower fixed costs absorption related to the organic growth as well as evolving revenue mix from growing multi-shop owners. These factors were compensated by improved buying conditions that enrich the gross margin. FinishMaster US pursued the expansion of its network during the three-month period of 2017, enlarging its footprint and reinforcing its position in major markets.
Sales for the Canadian Automotive Group were $97.5 million, compared to $90.6 million in 2016, an increase of 7.6%, and a direct result of the recent business acquisitions and the conversion effect of the Canadian dollar. The organic growth for the corporate stores was positive, a direct result of the committed leadership team and corporate stores strategy. Excluding the impact of the loss of an independent member, the Canadian Automotive Group organic growth would approximate 3.4%, resulting from a mix of current customer growth and new independent members joining the network. The EBITDA margin decrease of 2.1% compared to 2016 is mainly related to higher stock-based compensation (while the 2016 expenses benefited from a decline in share price), different revenue mix offsetting the contribution from recent business acquisitions and ongoing investments required in relation to the corporate store initiative. These factors were compensated by lower information technology expenses. Once the integration of the corporate stores and the implementation of the new point of sales systems will be completed, additional synergies and efficiency are expected.
DIVIDENDS
On May 3, 2017, the Uni-Select Board of Directors declared a quarterly dividend of C$0.0925 per share payable on July 18, 2017 to shareholders of record on June 30, 2017. This dividend is an eligible dividend for tax purposes.
CONFERENCE CALL
Uni-Select will host a conference call to discuss its first quarter results for 2017 on May 4, 2017 at 8:00 AM Eastern. 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 Eastern on May 4, 2017 until 11:59 PM Eastern on May 18, 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), condensed consolidated financial statements and related notes for the first quarter of 2017 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 financial 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, 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 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.
EBITDA margin - The EBITDA margin is a percentage corresponding to the ratio of the 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, 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 variances 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 statements of cash flows. Therefore, it should not be considered as an alternative to the consolidated statements 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.
The following table presents a reconciliation of organic growth.
The following table presents a reconciliation of EBITDA.
The following table presents a reconciliation of free cash flows.
UNI-SELECT INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
UNI-SELECT INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
UNI-SELECT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
UNI-SELECT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNI-SELECT INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Contacts:
Eric Bussieres
Chief Financial Officer
450 641-6958
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Datum: 03.05.2017 - 16:24 Uhr
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