BOUCHERVILLE, QUÉBEC--(Marketwired - July 30, 2015) -
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 paint and related products in the United States, today reported solid financial results with increased adjusted earnings for the second quarter ended June 30, 2015.
Over the course of the second quarter, the Corporation completed the sale of substantially all the net assets of Uni-Select USA, Inc. and Beck/Arnley Worldparts, Inc. to affiliates of Icahn Enterprises L.P. for net cash proceeds of $324 million. The proceeds of the transaction were used by Uni-Select to repay its outstanding debt and to settle related transaction costs. Accordingly, the second quarter and six-month period results include respectively two and five months of operations from the net assets sold.
"I am very pleased by our solid performance in the second quarter and delighted by the balanced contribution of both our automotive products and paint and related products segments to our results. I am particularly delighted that we are starting to see Uni-Select emerge as a substantially more profitable operation featuring a very strong balance sheet, said Richard G. Roy, President and Chief Executive Officer of Uni-Select. "As I prepare to leave for retirement, I could not be prouder of what we have achieved as a team and I am confident that an exciting future awaits Uni-Select under the leadership of Henry Buckley as President and Chief Executive Officer effective August 1, 2015."
(In thousands of US dollars, except per share amounts and percentages) | SECOND QUARTER | SIX-MONTH PERIOD | ||||||
2015 | 2014 | 2015 | 2014 | |||||
Sales | 408,299 | 478,690 | 819,984 | 891,767 | ||||
EBITDA | 19,035 | 29,681 | (103,230 | ) | 48,283 | |||
Adjusted EBITDA | 31,051 | 31,306 | 50,542 | 52,142 | ||||
Adjusted EBITDA margin | 7.6 | % | 6.5 | % | 6.2 | % | 5.8 | % |
Net earnings (loss) | 12,373 | 15,532 | (69,909 | ) | 23,920 | |||
Adjusted earnings | 19,954 | 16,470 | 29,987 | 26,193 | ||||
Earnings (loss) per share | 0.58 | 0.73 | (3.29 | ) | 1.12 | |||
Adjusted earnings per share | 0.94 | 0.77 | 1.41 | 1.23 |
SECOND QUARTER RESULTS
(All percentage increases and decreases represent year-over-year changes for the second quarter of 2015 compared to the second quarter of 2014, unless otherwise noted. The 2015 second quarter results include two months of operations from the net assets sold.)
The sales decrease of 14.7% in the second quarter, compared to last year, is due to the sale of net assets of Uni‐Select USA, Inc. and Beck/Arnley Worldparts, Inc. and by the declining Canadian dollar, while partly compensated by additional sales from recent acquisitions. On an organic basis, consolidated sales grew 3.7%, namely driven by the recruitment of new customers in the paint and related products segment combined with the implementation of a customer centric strategy in the automotive products segment.
The Corporation generated $19.0 million of EBITDA (after impairment and transaction charges related to the sale of net assets of $13.5 million and a net reversal of restructuring and other charges of $1.7 million), compared to $29.7 million last year. Adjusted EBITDA reached $31.1 million, resulting in an adjusted EBITDA margin of 7.6%, up from 6.5% last year.
Net earnings declined to $12.4 million, from $15.5 million last year, mainly as a result of impairment and transaction charges related to the sale of net assets. Adjusted earnings grew 21.1% from $16.5 million last year ($0.77 on a per share basis) to $20.0 million ($0.94 on a per share basis), favourably impacted by improved EBITDA from remaining operations, financing costs for debt reimbursement as well as by the lower depreciation and amortization on net assets sold.
As indicated above, the Corporation's results are presented in US dollars. Once converted to Canadian dollars, adjusted earnings per share reached C$1.16 for the second quarter of 2015, up 38.1% compared to C$0.84 in 2014.
Segmented Results
Prior to their disposal, the net assets sold over the course of the second quarter were included until May 31, 2015, in the automotive products group for segmented reporting. Accordingly, sales of the automotive products segment declined to $252.9 million from $331.7 million in the prior year, mainly as a result of this disposition and the declining Canadian dollar. Segment organic sales grew 3.0% in the second quarter, driven by a successful ongoing regional strategy to better cater to customer needs through an enhanced product offering and pricing optimization adjustments. EBITDA for the automotive products segment decreased to $4.0 million in the second quarter, a decline mainly attributable to the impairment and transaction charges. Adjusted EBITDA decreased to $14.0 million, a performance attributable to the inclusion of only two months of operation of the US activities sold in Q2, as well as to lower productivity of these operations.
The paint and related products segment recorded sales of $155.4 million, up 5.7% from 2014, or 4.4% organically. Segment EBITDA reached $19.2 million, up 24.1% from $15.5 million last year. This performance is namely attributable to adjustments on sales programs, enhanced gross margins resulting from optimal inventory management, accretive business acquisitions that were partially offset by an unfavourable customer mix. The segment adjusted EBITDA margin reached 12.6%, compared to 10.5% last year.
SIX-MONTH PERIOD RESULTS
(All percentage increases and decreases represent year-over-year changes for the six-month period of 2015 compared to the six-month period of 2014, unless otherwise noted. The 2015 six‐month period results include five months of operations from the net assets sold.)
For the first six-month period of 2015, overall sales decreased by 8.0% to $820.0 million, a performance explained by the same factors as for the second quarter. On an organic basis, sales grew 3.0% or $15.6 million in the first half of the year.
The Corporation recorded a negative EBITDA of $103.2 million for the first six months of 2015, compared to an EBITDA of $48.3 million last year. This is explained by impairment and transaction charges of $150.8 million 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 half of the year decreased by 3.1% while the adjusted EBITDA margin increased from 5.8% to 6.2%.
The Corporation recorded a net loss of $69.9 million in the first half of the year while adjusted earnings grew 14.5% to $30.0 million ($1.41 on a per share basis) from $26.2 million ($1.23 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 six-month period amount to C$1.74 compared to C$1.35 in 2014, up 28.9%.
Segmented Results
Prior to their disposal, 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 15.2% for the first six-month period of 2015 to $516.8 million, or down 8.6% excluding the impact of closed or sold locations, mainly related to the impact of the declining Canadian dollar and partially offset by the sales of recent accretive acquisitions. On an organic basis, sales were similar in the first half of the year. A negative segment EBITDA of $126.1 million was recorded in the first half of the year, down from $23.6 million last year, a decline explained by the impairment and transaction charges. Adjusted EBITDA decreased to $20.7 million, a performance mainly attributable to the inclusion of only five months of operation of the US activities sold in Q2, as well as to lower productivity of these operations.
The paint and related products segment recorded sales of $303.2 million in the first six-month period of the year, up 7.3%. Sales grew 5.5% organically or $15.4 million, driven mainly by the recruitment of new customers. Segment EBITDA reached $35.3 million, up 20.7% from 2014, while adjusted EBITDA reached $35.6 million, up 21.9%, mainly attributable to organic growth and accretive business acquisitions. Segment adjusted EBITDA margin was 11.8%, up from 10.3% for the corresponding period last year.
DEBT REIMBURSEMENT AND GROWTH STRATEGY
Over the course of the second quarter, the Corporation repaid in its entirety the $277.5 million outstanding debt. On June 30, 2015, the Corporation had $78.5 million in cash and $405 million in available credit facility, providing Uni-Select with the wherewithal to actively focus on its organic and acquisition growth-driven strategy.
DIVIDEND
The Uni-Select's Board of Directors declared a dividend of C$0.16 per share payable on October 20, 2015 to shareholders of record on September 30, 2015. This dividend is an eligible dividend for tax purposes.
CONFERENCE CALL
Uni-Select will host a conference call to discuss its second quarter results for 2015 on July 30, 2015 at 2 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 on August 10, 2015. To access the replay, dial 1 800 408-3053 followed by 1561870.
ABOUT UNI-SELECT
Leader in the Canadian distribution of automotive products, Uni-Select is also a leading independent automotive paint distributor in the United States with FinishMaster. Over 2,400 employees spread across 13 distribution centres and 189 corporate stores are dedicated to offering advanced solutions and first-rate service to customers in order for them to benefit from a positively 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 Second 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, 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.
UNI-SELECT INC.
CONSOLIDATED STATEMENTS OF EARNINGS
Reconciliation of non-IFRS measures
The following table presents a reconciliation of EBITDA and adjusted EBITDA.
Second quarter | Six-month period | ||||||||||||
2015 | 2014 | % | 2015 | 2014 | % | ||||||||
Net earnings (loss) | 12,373 | 15,532 | (69,909 | ) | 23,920 | ||||||||
Income tax expense (recovery) | 1,381 | 3,968 | (44,730 | ) | 4,047 | ||||||||
Equity income | 15 | (795 | ) | (110 | ) | (1,296 | ) | ||||||
Depreciation and amortization | 2,879 | 7,751 | 6,861 | 15,347 | |||||||||
Finance costs, net | 2,387 | 3,225 | 4,658 | 6,265 | |||||||||
EBITDA | 19,035 | 29,681 | (103,230 | ) | 48,283 | ||||||||
Restructuring and other charges | (1,730 | ) | - | 3,296 | - | ||||||||
Impairment and transaction charges related to the sale of net assets | 13,544 | - | 147,546 | - | |||||||||
Expenses related to the development and deployment of the enterprise resource planning system (ERP) (1) | - | - | - | 414 | |||||||||
Expenses related to the network optimization and to the closure and disposal of stores (2) | 202 | 1,625 | 2,930 | 3,445 | |||||||||
Adjusted EBITDA | 31,051 | 31,306 | (0.8 | ) | 50,542 | 52,142 | (3.1 | ) | |||||
Adjusted EBITDA margin | 7.6 | % | 6.5 | % | 6.2 | % | 5.8 | % |
(1) | Include costs mainly related to data conversion, employee training and deployment to various sites. |
(2) | Consist primarily of handling and freight expenses required to relocate inventory. |
The following table presents a reconciliation of adjusted earnings and adjusted earnings per share.
Second quarter | Six-month period | ||||||||
2015 | 2014 | % | 2015 | 2014 | % | ||||
Net earnings (loss) attributable to shareholders, as reported | 12,373 | 15,532 | (69,909 | ) | 23,920 | ||||
Restructuring and other charges, net of taxes | (1,109 | ) | - | 2,559 | - | ||||
Impairment and transaction charges related to the sale of net assets, net of taxes | 8,911 | - | 95,587 | - | |||||
Expenses related to the development and deployment of the ERP system, net of taxes | - | - | - | 247 | |||||
Expenses related to the network optimization and to the closure and disposal of stores, net of taxes | (221 | ) | 938 | 1,750 | 2,026 | ||||
Adjusted net earnings | 19,954 | 16,470 | 21.1 | 29,987 | 26,193 | 14.5 | |||
Net earnings (loss) per share attributable to shareholders, as reported | 0.58 | 0.73 | (3.29 | ) | 1.12 | ||||
Restructuring and other charges, net of taxes | (0.05 | ) | - | 0.12 | - | ||||
Impairment and transaction charges related to the sale of net assets, net of taxes | 0.42 | - | 4.49 | - | |||||
Expenses related to the development and deployment of the ERP system, net of taxes | - | - | - | 0.01 | |||||
Expenses related to the network optimization and to the closure and disposal of stores, net of taxes | (0.01 | ) | 0.04 | 0.09 | 0.10 | ||||
Adjusted earnings per share | 0.94 | 0.77 | 22.1 | 1.41 | 1.23 | 14.6 |
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 six-month period was $0.05 compared to the same period last year.
UNI-SELECT INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands of US dollars, except per share amounts, unaudited) | Quarter ended June 30, | Six-month period ended June 30, | |||||||
2015 | 2014 | 2015 | 2014 | ||||||
Sales | 408,299 | 478,690 | 819,984 | 891,767 | |||||
Purchases, net of changes in inventories | 285,451 | 338,174 | 573,382 | 626,610 | |||||
Gross margin | 122,848 | 140,516 | 246,602 | 265,157 | |||||
Employee benefits | 62,532 | 73,347 | 132,738 | 142,102 | |||||
Other operating expenses | 29,467 | 37,488 | 66,252 | 74,772 | |||||
Restructuring and other charges | (1,730 | ) | - | 3,296 | - | ||||
Impairment and transaction charges related to the sale of net assets | 13,544 | - | 147,546 | - | |||||
Earnings (loss) before finance costs, depreciation and amortization, equity income and income taxes | 19,035 | 29,681 | (103,230 | ) | 48,283 | ||||
Finance costs, net | 2,387 | 3,225 | 4,658 | 6,265 | |||||
Depreciation and amortization | 2,879 | 7,751 | 6,861 | 15,347 | |||||
Earnings (loss) before equity income and income taxes | 13,769 | 18,705 | (114,749 | ) | 26,671 | ||||
Equity income (loss) | (15 | ) | 795 | 110 | 1,296 | ||||
Earnings (loss) before income taxes | 13,754 | 19,500 | (114,639 | ) | 27,967 | ||||
Income tax expense (recovery) | |||||||||
Current | 178 | 5,202 | (2,089 | ) | 8,203 | ||||
Deferred | 1,203 | (1,234 | ) | (42,641 | ) | (4,156 | ) | ||
1,381 | 3,968 | (44,730 | ) | 4,047 | |||||
Net earnings (loss) attributable to shareholders | 12,373 | 15,532 | (69,909 | ) | 23,920 | ||||
Earnings (loss) per share | |||||||||
Basic | 0.58 | 0.73 | (3.29 | ) | 1.12 | ||||
Diluted | 0.58 | 0.72 | (3.29 | ) | 1.12 | ||||
Weighted average number of common shares outstanding (in thousands) | |||||||||
Basic | 21,325 | 21,264 | 21,273 | 21,264 | |||||
Diluted | 21,434 | 22,573 | 21,273 | 22,566 | |||||
UNI-SELECT INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands of US dollars, unaudited) | Quarter ended June 30, | Six-month period ended June 30, | |||||||
2015 | 2014 | 2015 | 2014 | ||||||
Net earnings (loss) | 12,373 | 15,532 | (69,909 | ) | 23,920 | ||||
Other comprehensive income (loss) | |||||||||
Items that will subsequently be reclassified to net earnings (loss): | |||||||||
Effective portion of changes in the fair value of cash flow hedges (net of income tax of $8 and $29 for the quarter and six-month period ($35 and $59 in 2014)) | (22 | ) | (85 | ) | (78 | ) | (158 | ) | |
Net change in the fair value of derivative financial instruments designated as cash flow hedges transferred to earnings (net of income tax of $123 and $167 for the quarter and six-month period ($48 and $88 in 2014)) | 332 | 116 | 452 | 238 | |||||
Unrealized exchange gains (losses) on the translation of financial statements to the presentation currency | (761 | ) | (5,307 | ) | 1,755 | (37 | ) | ||
Unrealized exchange gains (losses) on the translation of debt designated as a hedge of net investments in foreign operations | 3,889 | 9,497 | (10,257 | ) | 300 | ||||
3,438 | 4,221 | (8,128 | ) | 343 | |||||
Items that will not subsequently be reclassified to net earnings (loss): | |||||||||
Remeasurements of long-term employee benefit obligations (net of income tax of $834 and $599 for the quarter and six-month period ($529 and $1,193 in 2014)) | 2,256 | (829 | ) | 1,617 | (3,222 | ) | |||
Total other comprehensive income (loss) | 5,694 | 3,392 | (6,511 | ) | (2,879 | ) | |||
Comprehensive income (loss) attributable to shareholders | 18,067 | 18,924 | (76,420 | ) | 21,041 | ||||
UNI-SELECT INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to shareholders | ||||||||||||
(In thousands of US dollars, unaudited) | Share capital | Contributed surplus | Equity component of the convertible debentures | Retained earnings | Accumulated other comprehensive income (loss) | Total equity | ||||||
Balance, December 31, 2013 | 87,271 | 1,332 | 1,687 | 394,716 | 3,749 | 488,755 | ||||||
Net earnings | - | - | - | 23,920 | - | 23,920 | ||||||
Other comprehensive income (loss) | - | - | - | (3,222 | ) | 343 | (2,879 | ) | ||||
Comprehensive income | - | - | - | 20,698 | 343 | 21,041 | ||||||
Contributions by and distributions to shareholders: | ||||||||||||
Share repurchases | (25 | ) | - | - | (123 | ) | - | (148 | ) | |||
Dividends | - | - | - | (5,434 | ) | - | (5,434 | ) | ||||
Stock-based compensation | - | 674 | - | - | - | 674 | ||||||
(25 | ) | 674 | - | (5,557 | ) | - | (4,908 | ) | ||||
Balance, June 30, 2014 | 87,246 | 2,006 | 1,687 | 409,857 | 4,092 | 504,888 | ||||||
Balance, December 31, 2014 | 87,238 | 2,424 | 1,687 | 428,497 | (6,850 | ) | 512,996 | |||||
Net loss | - | - | - | (69,909 | ) | - | (69,909 | ) | ||||
Other comprehensive income (loss) | - | - | - | 1,617 | (8,128 | ) | (6,511 | ) | ||||
Comprehensive loss | - | - | - | (68,292 | ) | (8,128 | ) | (76,420 | ) | |||
Contributions by and distributions to shareholders: | ||||||||||||
Issuance of shares | 8,546 | - | - | - | - | 8,546 | ||||||
Convertible debentures redemption | - | - | (1,687 | ) | 1,687 | - | - | |||||
Dividends | - | - | - | (5,343 | ) | - | (5,343 | ) | ||||
Stock-based compensation | - | 667 | - | - | - | 667 | ||||||
8,546 | 667 | (1,687 | ) | (3,656 | ) | - | 3,870 | |||||
Balance, June 30, 2015 | 95,784 | 3,091 | - | 356,549 | (14,978 | ) | 440,446 | |||||
UNI-SELECT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of US dollars, unaudited) | Quarter ended June 30, | Six-month period ended June 30, | |||||||
2015 | 2014 | 2015 | 2014 | ||||||
OPERATING ACTIVITIES | |||||||||
Net earnings (loss) | 12,373 | 15,532 | (69,909 | ) | 23,920 | ||||
Non-cash items: | |||||||||
Restructuring and other charges | (1,730 | ) | - | 3,296 | - | ||||
Impairment and transaction charges related to the sale of net assets | 13,544 | - | 147,546 | - | |||||
Finance costs, net | 2,387 | 3,225 | 4,658 | 6,265 | |||||
Depreciation and amortization | 2,879 | 7,751 | 6,861 | 15,347 | |||||
Income tax expense (recovery) | 1,381 | 3,968 | (44,730 | ) | 4,047 | ||||
Amortization of incentives granted to customers | 2,818 | 2,319 | 5,757 | 5,043 | |||||
Other non-cash items | 1,222 | (829 | ) | 4,057 | 248 | ||||
Changes in working capital items | 9,162 | 20,793 | (26,025 | ) | 12,290 | ||||
Interest paid | (1,826 | ) | (2,164 | ) | (4,544 | ) | (5,287 | ) | |
Income taxes paid | (2,709 | ) | (3,672 | ) | (7,074 | ) | (7,708 | ) | |
Cash flows from operating activities | 39,501 | 46,923 | 19,893 | 54,165 | |||||
INVESTING ACTIVITIES | |||||||||
Net business acquisitions | (416 | ) | 2,209 | (10,728 | ) | (17,577 | ) | ||
Net cash proceeds from sale of net assets | 323,604 | - | 323,604 | - | |||||
Balance of purchase price | (7 | ) | 198 | (282 | ) | 36 | |||
Advances to merchant members and incentives granted to customers | (3,258 | ) | (6,728 | ) | (6,454 | ) | (10,496 | ) | |
Reimbursement of advances to merchant members | 988 | 1,944 | 2,109 | 3,994 | |||||
Dividends received from equity investments | - | - | 401 | - | |||||
Net acquisitions of property and equipment | (4,305 | ) | (1,739 | ) | (9,330 | ) | (3,103 | ) | |
Net acquisitions and development of intangible assets | (1,677 | ) | (3,242 | ) | (2,958 | ) | (4,243 | ) | |
Cash flows from (used in) investing activities | 314,929 | (7,358 | ) | 296,362 | (31,389 | ) | |||
FINANCING ACTIVITIES | |||||||||
Increase in long-term debt | 11,493 | 11,621 | 96,425 | 44,034 | |||||
Repayment of long-term debt | (294,346 | ) | (48,659 | ) | (295,453 | ) | (61,714 | ) | |
Convertible debenture redemption | - | - | (41,713 | ) | - | ||||
Net increase (decrease) in merchant members' deposits in the guarantee fund | 119 | (21 | ) | 48 | 95 | ||||
Issuance of shares | 8,447 | (148 | ) | 8,546 | (148 | ) | |||
Dividends paid | (2,608 | ) | (2,369 | ) | (5,267 | ) | (5,044 | ) | |
Cash flows used in financing activities | (276,895 | ) | (39,576 | ) | (237,414 | ) | (22,777 | ) | |
Effects of fluctuations in exchange rates on cash | (381 | ) | 2 | (421 | ) | - | |||
Net increase (decrease) in cash | 77,154 | (9 | ) | 78,420 | (1) | ||||
Cash, beginning of period | 1,373 | 65 | 107 | 57 | |||||
Cash, end of period | 78,527 | 56 | 78,527 | 56 | |||||
(In thousands of US dollars, unaudited) | June 30, | Dec. 31, | |||
2015 | 2014 | ||||
ASSETS | |||||
Current assets: | |||||
Cash | 78,527 | 107 | |||
Trade and other receivables | 139,005 | 224,910 | |||
Income taxes receivable | 16,864 | 10,663 | |||
Inventory | 234,703 | 529,575 | |||
Prepaid expenses | 10,243 | 11,829 | |||
Total current assets | 479,342 | 777,084 | |||
Equity investments, other investments and advances to merchant members | 17,600 | 21,743 | |||
Property and equipment | 27,554 | 51,924 | |||
Intangible assets | 68,089 | 133,556 | |||
Goodwill | 137,960 | 192,496 | |||
Deferred tax assets | 55,608 | 13,502 | |||
TOTAL ASSETS | 786,153 | 1,190,305 | |||
LIABILITIES | |||||
Current liabilities: | |||||
Trade and other payables | 296,688 | 373,690 | |||
Provision for restructuring and other charges | 5,642 | 6,724 | |||
Dividends payable | 2,793 | 2,743 | |||
Current portion of long-term debt, convertible debentures and merchant members' deposits in the guarantee fund | 3,325 | 49,993 | |||
Total current liabilities | 308,448 | 433,150 | |||
Long-term employee benefit obligations | 25,092 | 25,233 | |||
Long-term debt | 5,816 | 210,462 | |||
Merchant members' deposits in the guarantee fund | 6,056 | 6,388 | |||
Derivative financial instruments | - | 511 | |||
Deferred tax liabilities | 295 | 1,565 | |||
TOTAL LIABILITIES | 345,707 | 677,309 | |||
EQUITY | |||||
Share capital | 95,784 | 87,238 | |||
Contributed surplus | 3,091 | 2,424 | |||
Equity component of the convertible debentures | - | 1,687 | |||
Retained earnings | 356,549 | 428,497 | |||
Accumulated other comprehensive loss | (14,978 | ) | (6,850 | ) | |
TOTAL EQUITY | 440,446 | 512,996 | |||
TOTAL LIABILITIES AND EQUITY | 786,153 | 1,190,305 | |||
Contact Information:
Louis Juneau
Vice-President, Legal Affairs and Secretary
450 641-6922
investorrelations@uniselect.com
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