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Press release from Marketwire

2011, A Record-Breaking Year for Uni-Select

Thursday, March 08, 2012

2011, A Record-Breaking Year for Uni-Select11:13 EST Thursday, March 08, 2012BOUCHERVILLE, QUEBEC--(Marketwire - March 8, 2012) -Revenue increase of 39% EBITDA increase of 40% Net earnings increase of 28% Dividend raise of 8.3%Uni-Select Inc. (TSX:UNS) generated sales of 436.7 million dollars in the fourth quarter of 2011, compared to 305.4 million dollars in the same period of 2010. Net earnings increased to 11.7 million dollars in the fourth quarter of 2011 or $0.54 per share compared to 10.2 million dollars or $0.52 per share for the same quarter of the previous year.(Unless otherwise indicated, all amounts in this press release are expressed in US dollars and are presented in keeping with International Financial Reporting Standards (IFRS).)(In millions, except earnings per share)4thQUARTERTWELVE-MONTH PERIOD2011201020112010Sales436.7305.41,780.61,285.4Adjusted EBITDA22.715.3109.980.6EBITDA21.414.2105.375.1Adjusted earnings12.810.860.548.5Earnings from continuing operations11.710.256.545.1Adjusted earnings per share0.590.552.792.46Earnings per share from continuing operations0.540.522.612.29The increase in total sales stems primarily from the addition of FinishMaster's operations and the acquisition of the activities of Parts Depot in the last quarter combined with organic growth of 3.4%. The Canadian operations, with sales amounting to 123.5 million dollars, recorded organic growth of 1.6% during the fourth quarter. The American operations recorded organic sales growth of 4.2% to reach 313.2 million dollars.The adjusted EBITDA margin was 5.2% in the fourth quarter of 2011, an increase of 0.2% compared to the same quarter in 2010. This increase is mainly the result of improvements in the terms and conditions extended by suppliers of products partially offset by pressures on margins resulting from an unfavourable variation in the mix of customers."We are proud to record improved sales and net earnings for the eighth quarter in a row. Growth has come from an increase in organic sales and a contribution of recently acquired businesses. FinishMaster largely contributed to the improvement of our quarterly results. The integration plan of FinishMaster, including store consolidation, evolves as planned. We remain confident that the target of 10 million dollars in annual synergies within two years is attainable." said Mr. Richard G. Roy, President and Chief Executive Officer of Uni-Select."In addition, the fourth quarter results were favourably impacted by the operations derived from the assets acquired from Parts Depot in the last quarter. The 2012 results will also benefit from the contribution of this latest addition and from the proactive margin management initially reflected in the results of the last quarter." added Mr. Roy.Financial Highlights for Fiscal Year Ended December 31, 2011For the period ended December 31, 2011, sales amounted to 1,780.6 million dollars compared to sales of 1,285.4 million in 2010. Net earnings totalled 56.5 million dollars or $2.61 per share compared to 45.1 million dollars or $2.29 per share for the same period in 2010.Canadian operations recorded sales of 538.3 million dollars compared to 503.5 million dollars in the previous year. Organic growth was in excess of 3.5%. The organic growth calculation takes into account that there were two business days less in 2011 and excludes the exchange rate fluctuation from Canadian to American dollar.Sales from American operations during the same period in 2011 reached 1,242.3 million dollars compared to 781.8 million dollars in 2010, including an organic growth of 2.1%.The adjusted EBITDA margin stood at 6.2% in 2011, a slight decrease when compared to 6.3% recorded in 2010. This decrease is mainly due to an increase in fuel cost that negatively impacted delivery charges and to pressures on margins resulting from an unfavourable variation in customer mix. These items were partially offset by improvements in the terms and conditions extended by suppliers.In closing, the Board of Directors of Uni-Select declared a dividend of CDN$0.13 per share payable on April 20, 2012 to common shareholders of record on March 30, 2012. This improvement in the dividend represents an increase of 8.3% compared to the preceding quarter. This dividend is an eligible dividend for tax purposes.About Uni-SelectFounded in 1968, Uni-Select is a major distributor of replacement parts, equipment, tools and accessories 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. With 6,600 employees, the Uni- Select network includes over 2,500 independent jobbers and services more than 3,500 points of sale in North America. Uni-Select is headquartered in Boucherville and its shares are traded on the Toronto Stock Exchange (TSX) under the symbol UNS.The information provided in this press release includes some forward-looking information which includes 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.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."EBITDA": This measurement represents operating income before depreciation, amortization, finance costs, acquisition related costs, income taxes, gains on disposal of fixed assets and non-controlling interest. This measurement is a widely accepted financial indicator of a corporation's ability to service and incur debt. It should not be considered by an investor as an alternative to operating income or net earnings, as an indicator of operating performance or cash flows, or as a measurement of liquidity, but as additional information. In the Corporation's statement of earnings, EBITDA corresponds to "Earnings before the following items." "Adjusted EBITDA": This measurement corresponds to EBITDA resulting from operational activities, excluding some adjustments. According to management, adjusted EBITDA is more representative of the Corporation's operational performance and more appropriate in providing additional information to investors because it gives an indication of the Corporation's ability to repay its debts. "Adjustments": These are unusual incurred costs that Management regards as not being characteristic or representative of the Corporation's regular operations. They include the following costs: those incurred when disposing of or closing stores, non-capitalizable costs related to the implementation of the enterprise resource planning software and costs related to the reorganisation of the distribution network. Excluding these items does not mean that they are not recurrent.Adjustments have been made to some 2010 figures in order to reflect the transition from Canadian Generally Accepted Accounting Principles (GAAP) to international standards.Additional InformationIt is possible to consult the management report and the unaudited financial statements as well as accompanying notes for the Fourth Quarter of 2011 in the "Investor Information" section found at the Corporation's website at: www.uniselect.com as well as on SEDAR's: www.sedar.com. The reader will also find on these websites the Corporation's audited Annual Report as well as other information related to Uni-Select, including the Annual Notice.Conference CallThursday, March 8, 2012 at 3 PM (EST), Uni-Select will host a conference call to discuss the 2011 Fourth Quarter financial results. To join the conference, dial 1 866 696-5910 followed by 8567461.UNI-SELECT INC.CONSOLIDATED STATEMENTS OF EARNINGSThree and twelve-month periods ended December 31, 2011 and 2010(In thousands of US dollars, except earnings per share, unaudited)Three-month periodTwelve-month periodNote2011201020112010$$$$Sales436,650305,4161,780,5701,285,375Earnings before the following items:21,36114,180105,26875,118Net gain on disposal of property and equipment--(1,728)-Acquisition-related costs7301-3,277-Finance costs, net54,5592,24517,2836,948Depreciation and amortization65,7382,70122,16612,132Earnings before income taxes10,7639,23464,27056,038Income taxes10Current(7,376)(2,346)(5,444)13,837Deferred6,4801,46013,734(2,627)(896)(886)8,29011,210Earnings from continuing operations11,65910,12055,98044,828Loss from discontinued operations8-(914)-(914)Net earnings11,6599,20655,98043,914Attributable to shareholders11,7469,32656,54544,180Attributable to non-controlling interests(87)(120)(565)(266)11,6599,20655,98043,914Earnings per share9BasicFrom continuing operations0.540.522.612.29From discontinued operations-(0.05)-(0.05)Net earnings0.540.472.612.24DilutedFrom continuing operations0.540.522.592.29From discontinued operations-(0.05)-(0.05)Net earnings0.540.472.592.24Weighted average number of shares outstanding(in thousands)9Basic21,65319,70821,64619,717Diluted21,65519,71622,87119,725The Statement of Earnings by nature required by International Financial Reporting Standards ("IFRS") is presented in Note 19.The accompanying notes are an integral part of the Interim Consolidated Financial Statements.UNI-SELECT INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEThree and twelve-month periods ended December 31, 2011 and 2010(In thousands of US dollars, unaudited)Three-month periodTwelve-month period2011201020112010$$$$Net earnings11,6599,20655,98043,914Other comprehensive incomeEffective portion of changes in fair value of cash flow hedges (net of incomes taxes of $57 and $254 for the three and twelve-month periods ($17 and $935 in 2010))(156) (42 )(685) (2,975 )Net change in fair value of derivative financial instruments designated as cash flow hedges transferred to earnings (net of income taxes of $168 and $875 for the three and twelve-month periods ($290 and $1,070 in 2010))512 7942,372 2,9743567521,687(1)Unrealized exchange gains (losses) on the translation of financial statements to the presentation currency(3,921) 95,051 382Unrealized exchange gains (losses) on the translation of debt designated as a hedge of net investments in foreign operations4,917 5,081(5,222) 7,834Defined benefit plan actuarial losses (net of income taxes of $2,601 ($1,184 in 2010))(7,069) (3,217 )(7,069) (3,217 )Other comprehensive income(5,717)2,625(5,553)4,998Comprehensive income5,94211,83150,42748,912Attributable to shareholders6,02911,95150,99249,178Attributable to non-controlling interests(87)(120)(565)(266)5,94211,83150,42748,912The accompanying notes are an integral part of the Interim Consolidated Financial Statements.UNI-SELECT INC.CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYYears ended December 31, 2011 and 2010(In thousands of US dollars, unaudited)EquityAccumulatedcomponent ofotherconvertiblecomprehensivedebentures andNon-Shareincome (loss)contributedRetainedcontrollingTotalNotecapital(note 14)surplusearningsTotalinterestsequity$$$$$$$Balance at January 1, 201039,046(3,515)298306,119341,9483,256345,204Net earnings---44,18044,180(266)43,914Other comprehensive income-8,215-(3,217)4,998-4,998Total comprehensive income-8,215-40,96349,178(266)48,912Contributions by and distributions to shareholdersShare issuances1389---89-89Share redemptions13(36)--(330)(366)-(366)Dividends---(8,957)(8,957)-(8,957)Stock-based compensation expense--77-77-7753-77(9,287)(9,157)-(9,157)Changes in ownership interests in subsidiaries that do not result in a loss of controlBuy-back of non-controlling interests7-----(508)(508)Foreign exchange translation adjustmenton non-controlling interests - - - - - 141 141Balance at December 31, 201039,0994,700375337,795381,9692,623384,592Net earnings---56,54556,545(565)55,980Other comprehensive income-1,516-(7,069)(5,553)-(5,553)Total comprehensive income-1,516-49,47650,992(565)50,427Contributions by and distributions to shareholdersShare issuances1350,215---50,215-50,215Issuance of convertible debentures13--1,687-1,687-1,687Share redemptions13(374)--(1,481)(1,855)-(1,855)Dividends---(10,528)(10,528)-(10,528)Stock-based compensation expense--77-77-7749,841-1,764(12,009)39,596-39,596Changes in ownership interests in subsidiaries that do not result in a loss of controlBuy-back of non-controlling interests7-----(1,009)(1,009)Foreign exchange translation adjustment on non-controlling interests - - - - - (16) (16)Balance at December 31, 201188,9406,2162,139375,262472,5571,033473,590The accompanying notes are an integral part of the Interim Consolidated Financial Statements.UNI-SELECT INC.CONSOLIDATED STATEMENTS OF CASH FLOWSThree and twelve-month periods ended December 31, 2011 and 2010(In thousands of US dollars, unaudited)Three-month periodTwelve-month periodNote2011201020112010$$$$OPERATING ACTIVITIESEarnings from continuing operations11,65910,12055,98044,828Non-cash itemsDepreciation and amortization65,7382,70122,16612,132Income tax expense(896)(886)8,29011,210Finance costs, net54,5592,24517,2836,948Net gain on disposal of property and equipment--(1,728)-Other non-cash items(177)213210814Changes in working capital items(5,102)(8,563)(34,384)(24,519)Interest paid(2,549)(2,424)(14,865)(6,939)Income taxes paid(199)(7,038)(9,158)(17,123)Cash flows from operating activities from continuing operations13,033 (3,632)43,794 27,351Cash flows from operating activities from discontinued operations- (1,053)- (2,105)Cash flows from operating activities13,033(4,685)43,79425,246INVESTING ACTIVITIESBusiness acquisitions7(32,606)-(255,608)(4,008)Repurchase of non-controlling interests7(204)(255)(636)(255)Proceeds from business disposals7-7291572,914Balance of purchase price2833597371,557Investments and advances to merchant members(2,822)(800)(11,073)(2,601)Receipts on advances to merchant members5666352,3683,392Acquisitions of property and equipment(2,745)(1,844)(10,702)(8,203)Disposal of property and equipment-5065,9841,606Development of intangible assets11(3,690)(8,622)(24,847)(37,119)Cash flows from investing activities(41,218)(9,292)(293,620)(42,717)FINANCING ACTIVITIESNet increase (decrease) in bank indebtedness(10,736)10,658(10,681)11,118Increase in long-term debt1245,559297373,033322Repayment of long-term debt(1,640)(17)(198,585)(90)Merchant members' deposits in the guarantee fund(31)(60)147319Issuance of convertible debentures, net ofissuance costs12- -49,741 -Share issuances, net of issuance costs13235-49,59689Share redemptions13(1,197)(130)(1,855)(366)Dividends paid(2,590)(2,177)(10,270)(8,858)Cash flows from financing activities29,6008,571251,1262,534Effect of fluctuations in exchange rates on cash1229(8)172Increase (decrease) in cash1,427(5,377)1,292(14,765)Cash, beginning of period2445,75637915,144Cash, end of period1,6713791,671379The accompanying notes are an integral part of the Interim Consolidated Financial Statements.UNI-SELECT INC.CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONDecember 31, 2011 and 2010 and January 1, 2010(In thousands of US dollars, unaudited)December 31,December 31, January 1,Note201120102010$$$ASSETSCurrent assetsCash1,67137915,144Trade and other receivables198,495157,219143,742Income taxes receivable25,2347,0203,687Inventory579,246404,336375,255Prepaid expenses11,3587,4926,052Assets related to discontinued operations8--2,863Total current assets816,004576,446546,743Investments and advances to merchant members22,14916,85416,082Property and equipment43,13432,47235,075Intangible assets11156,95861,18129,418Goodwill11184,73494,72589,777Deferred tax assets24,24223,84918,216TOTAL ASSETS1,247,221805,527735,311LIABILITIESCurrent liabilitiesBank indebtedness49711,45542Trade and other payables and provisions301,415190,525174,947Dividends payable2,5522,2942,195Instalments on long-term debt and on merchant members'deposits in the guarantee fund15,694 269 385Liabilities related to discontinued operations8--1,532Total current liabilities320,158204,543179,101Post-employment benefit obligations24,59015,41310,464Long-term debt12337,319170,610170,373Convertible debentures1247,225--Merchant members' deposits in the guarantee fund7,7577,7236,963Derivative financial instruments2,5054,8164,951Deferred tax liabilities34,07717,83018,255TOTAL LIABILITIES773,631420,935390,107EQUITYShare capital1388,94039,09939,046Contributed surplus452375298Equity component of convertible debentures121,687--Retained earnings375,262337,795306,119Accumulated other comprehensive income (loss)146,2164,700(3,515)TOTAL SHAREHOLDERS' EQUITY472,557381,969341,948Non-controlling interest1,0332,6233,256TOTAL EQUITY473,590384,592345,204TOTAL LIABILITIES AND EQUITY1,247,221805,527735,311The accompanying notes are an integral part of the Interim Consolidated Financial Statements.FOR FURTHER INFORMATION PLEASE CONTACT: UNI-SELECT INC.Source:www.uni-select.comORInvestor Relations andKarine VachonCommunications Manager(450) 641-6972investorrelation@uniselect.com