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Press release from Marketwire

Uni-Select Inc.: First Quarter Results

- Sales increased by 13.6% - EBITDA increased by 13.5% - Net earnings increased by 16.2%

Tuesday, May 08, 2012

Uni-Select Inc.: First Quarter Results09:49 EDT Tuesday, May 08, 2012BOUCHERVILLE, QUEBEC--(Marketwire - May 8, 2012) - Uni-Select Inc. (TSX:UNS) generated sales of 450.7 million dollars in the first quarter of 2012, compared to 396.8 million dollars in the same period of 2011. EBITDA improved from 21.7 million dollars in the first quarter 2011 to 24.6 million dollars this quarter. Net earnings increased to 11.2 million dollars in the first quarter of 2012 or $0.52 per share compared to 9.7 million dollars or $0.45 per share for the same quarter last year. (Unless otherwise indicated, all amounts in this press release are expressed in US dollars.)(In thousands of dollars, except earnings per share)1ST QUARTER20122011Sales450,728396,784Adjusted EBITDA27,31523,139EBITDA24,62121,700Adjusted earnings12,96111,347Net earnings11,2319,662Adjusted earnings per share0.600.53Earnings per share0.520.45The increase in total sales stems primarily from the addition of FinishMaster's operations and the acquisition of store operations in Florida in the fourth quarter 2011 combined with organic growth of 4.2%. The Canadian operations, with sales amounting to 115.7 million dollars, recorded organic sales growth of 1.5% during the first quarter. The American operations recorded organic sales growth of 5.2% to reach 335.0 million dollars.The adjusted EBITDA margin was 6.1% in the first quarter of 2012, an increase of 0.3% compared to the same quarter in 2011. The improvement was mainly due to gross margin increases derived from better buying conditions and proactive management of selling prices. Moreover, the marginal contribution resulting from organic growth and acquisitions completed in 2011, combined with synergies achieved, contributed to decrease the proportion of fixed costs as a percentage of sales. Higher IT maintenance costs related to the transition to the integrated enterprise resource planning system combined with an unfavorable distribution channels mix negatively impacted the adjusted EBITDA margin partially offsetting the above factors. "This quarter, we posted improved results in terms of sales, EBITDA and net earnings. The addition of FinishMaster and the acquired Florida assets teamed with a satisfactory increase in organic sales positively contributed to our growth." said Mr. Richard G. Roy, President and Chief Executive Officer of Uni-Select. "During the next quarters, our focus will remain on the increased efficiency of our operations with the objectives to continue delivering improved results and reduce our debt to the level that our investors and shareholders are accustomed to. We will also pursue the integration of FinishMaster's activities as well as the assets recently acquired in Florida. We are very pleased with the deployment of the enterprise resource planning system which will continue during the year. " added Mr. Roy.In closing, the Board of Directors of Uni-Select declared a dividend of CDN$0.13 per share payable on July 20, 2012 to shareholders of record on June 30, 2012. 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 leader independent distributor of automotive paint and related products in the country. 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. Additional InformationThe management report and the unaudited financial statements as well as accompanying notes for the First Quarter of 2012 are available in the "Investor Information" section on 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 Annual Report as well as other information related to Uni-Select, including its Annual Information Form. Annual General and Special Meeting of Shareholders Thursday, May 8, 2012 at 1:30 PM (EST), Uni-Select will host its Annual General and Special Meeting of Shareholders. The meeting will be held at Marriott Château Champlain (One, Place du Canada, Montréal) in the Caf'Conc room.Conference CallThursday, May 8, 2012 at 3:30 PM (EST), Uni-Select will host a conference call to discuss the 2012 First Quarter financial results. To join the conference, dial 1 866 696-5910 followed by 8567461. UNI-SELECT INC.CONSOLIDATED STATEMENT OF EARNINGS(In thousands of US dollars, except per share amounts, unauditedThree-month period ended March 31,20122011$$Sales450,728396,784Earnings before the following items24,62121,700Finance costs, net (Note 3)4,8264,528Depreciation and amortization (Note 4)6,0594,949Net gain on disposal of property and equipment-(1,728)Acquisition-related costs (Note 5)-2,976Earnings before income taxes13,73610,975Income taxes (Note 7)Current8,2118,744Deferred(5,615)(7,271)2,5961,473Net earnings11,1409,502Attributable to shareholders11,2319,662Attributable to non-controlling interests(91)(160)11,1409,502Earnings per share, basic and diluted (Note 6)0.520.45Weighted average number of shares outstanding (in thousands) (Note 6)Basic21,63621,559Diluted21,63721,568The Consolidated Statement of Earnings by nature is presented in Note 12.The accompanying notes are an integral part of the Interim Consolidated Financial Statements.UNI-SELECT INC.CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME(In thousands of US dollars, unaudited)Three-month period ended March 31,20122011$$Net earnings11,1409,502Other comprehensive incomeEffective portion of changes in fair value of cash flow hedges (net of income taxes of $100 ($(19) in 2011))(271)(52)Net change in fair value of derivative financial instruments designated as cash flow hedges transferred to earnings (net of income taxes of $180 ($234 in 2011))483633212581Unrealized exchange losses on the translation of financial statements to the presentation currency(4,467)(404)Unrealized exchange gains on the translation of debt designated as a hedge of net investments in foreign operations5,9997,804Defined benefit plan actuarial gain (net of income taxes of $157)426-Other comprehensive income2,1707,981Comprehensive income13,31017,483Attributable to shareholders13,40117,643Attributable to non-controlling interests(91)(160)13,31017,483The accompanying notes are an integral part of the Interim Consolidated Financial Statements.UNI-SELECT INC.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY(In thousands of US dollars, unaudited)Attributable to shareholdersShare capitalAccumulated other comprehensive income (Note 8)Equity component of convertible debentures and contributed surplusRetained earningsAttributable to non-controlling interests(Note 5)Total equity$$$$$$Balance at December 31, 201188,9406,2162,139375,2621,033473,590Net earnings---11,231(91)11,140Other comprehensive income-1,744-426-2,170Total comprehensive income-1,744-11,657(91)13,310Contributions by and distributions to shareholdersShare redemptions(3)--(10)-(13)Dividends---(2,832)-(2,832)Stock-based compensation expense--10--10(3)-10(2,842)-(2,835)Changes in ownership interests in subsidiaries that do not result in a loss of controlBuy-back of non-controlling interests--(98)-(1,053)(1,151)Foreign exchange translation adjustment on non-controlling interests----111111Balance at March 31, 201288,9377,9602,051384,077-483,025Balance at December 31, 201039,0994,700375337,7952,623384,592Net earnings---9,662(160)9,502Other comprehensive income-7,981---7,981Total comprehensive income-7,981-9,662(160)17,483Contributions by and distributions to shareholdersShare issuances49,980----49,980Issuance of convertible debentures--2,418--2,418Dividends---(2,664)-(2,664)Stock-based compensation expense--19--1949,980-2,437(2,664)-49,753Changes in ownership interests in subsidiaries that do not result in a loss of controlForeign exchange translation adjustment on non-controlling interests----7878Balance at March 31, 201189,07912,6812,812344,7932,541451,906The accompanying notes are an integral part of the Interim Consolidated Financial Statements.UNI-SELECT INC.CONSOLIDATED STATEMENT OF CASH FLOWS(In thousands of US dollars, unaudited)Three-month period ended March 31,20122011$$OPERATING ACTIVITIESNet earnings11,1409,502Non-cash itemsDepreciation and amortization (Note 4)6,0594,949Income tax expense (Note 7)2,5961,473Finance costs, net (Note 3)4,8264,528Net gain on disposal of property and equipment-(1,728)Other non-cash items647111Changes in working capital items(14,024)(61,272)Interest paid(5,818)(3,157)Income taxes paid(2,119)(8,478)Cash flows from operating activities3,307(54,072)INVESTING ACTIVITIESBusiness acquisitions (Note 5)(1,570)(222,765)Balance of purchase or sale price(364)37Advances to merchant members(2,680)(2,771)Receipts on investments and advances to merchant members1,446910Acquisitions of property and equipment(1,269)(3,173)Disposals of property and equipment1221,410Development of intangible assets(5,099)(7,187)Cash flows from investing activities(9,414)(233,539)FINANCING ACTIVITIESNet increase (decrease) in bank indebtedness3(866)Increase in long-term debt21,230362,335Repayment of long-term debt(12,453)(171,039)Merchant members' deposits in the guarantee fund(132)98Issuance of convertible debentures, net of issuance costs-49,777Share issuances, net of issuance costs-49,361Share redemptions(13)-Dividends paid(2,616)(2,296)Cash flows from financing activities6,019287,370Effects of fluctuations in exchange rates on cash312Decrease in cash(57)(239)Cash, beginning of period1,671379Cash, end of period1,614140The accompanying notes are an integral part of the Interim Consolidated Financial Statements.UNI-SELECT INC.CONSOLIDATED STATEMENT OF FINANCIAL POSITION(In thousands of US dollars, unaudited) March 31, 2012December 31, 2011$$ASSETSCurrent assetsCash1,6141,671Trade and other receivables213,897198,495Income taxes receivable18,87725,234Inventory561,594579,246Prepaid expenses11,39911,358Total current assets807,381816,004Investments and advances to merchant members23,21622,149Property and equipment43,52843,134Intangible assets157,531156,958Goodwill186,456184,734Deferred tax assets24,03924,242TOTAL ASSETS1,242,1511,247,221LIABILITIESCurrent liabilitiesBank indebtedness509497Trade and other payables and provisions280,068298,686Dividends payable2,8162,552Instalments on long-term debt and on merchant members' deposits in the guarantee fund17,69015,694Total current liabilities301,083317,429Long-term employee benefit obligations26,20827,319Long-term debt345,284337,319Convertible debentures48,32947,225Merchant members' deposits in the guarantee fund7,7707,757Derivative financial instruments2,2122,505Deferred tax liabilities28,24034,077TOTAL LIABILITIES759,126773,631EQUITYShare capital88,93788,940Contributed surplus364452Equity component of convertible debentures1,6871,687Retained earnings384,077375,262Accumulated other comprehensive income (Note 8)7,9606,216TOTAL SHAREHOLDERS' EQUITY483,025472,557Non-controlling interests-1,033TOTAL EQUITY483,025473,590TOTAL LIABILITIES AND EQUITY1,242,1511,247,221The accompanying notes are an integral part of the Interim Consolidated Financial Statements.FOR FURTHER INFORMATION PLEASE CONTACT: UNI-SELECT INC.Source:www.uni-select.comORKarine VachonContact:Investor Relations and Communications Manager(450) 641-6972investorrelation@uniselect.com