Uni-Select Inc./First Quarter Ended March 31, 2013: Sales at $422 Million and Adjusted Earnings at $7 Million

BOUCHERVILLE, QUÉBEC--(Marketwired - May 1, 2013) - Uni-Select Inc. (TSX:UNS)

(Unless otherwise indicated, all amounts are expressed in US dollars)

	1st QUARTER
(In thousands of dollars, except per share amounts)	2013	2012
Sales	421,820	445,260
Adjusted EBITDA	17,311	26,602
EBITDA	15,928	23,908
Adjusted earnings	6,995	12,810
Net earnings	6,144	11,081
Adjusted earnings per share	0.33	0.59
Earnings per share	0.29	0.51

Uni-Select Inc. generated sales of $421.8 million in the first quarter of 2013, compared to $445.3 million for the same period in 2012. The 5.3% decrease in sales for the quarter is mainly related to two less billing days and the impact of the closure of stores in relation to the optimization plan. As a result, sales of US operations totaled $316 million in the first quarter or a negative organic growth of 1.6%, while sales of Canadian operations totaled $106 million, an organic growth of 0.3%.

The adjusted EBITDA margin stood at 4.1% for the first quarter of 2013, up from 2.9% during the fourth quarter of 2012, but lower than the 6.0% achieved in the corresponding quarter of 2012. This decrease is mainly attributable to the decline in sales while expenses could not be adjusted at the same pace, to a lower gross margin due to unfavorable change in the distribution channel mix and lower price protections that we benefited from in the first quarter last year. The savings derived from the optimization plan implemented during the third quarter of 2012 combined with a decrease in IT expenses, as the transition to the ERP system is in progress, partly offset the items mentioned above.

"As anticipated in February, the challenges posed by the implementation of the enterprise resource planning software have had a negative impact on the results of the first quarter even if the problems were resolved at the end of January. We are currently working on optimizing our processes to gain greater efficiency" says Richard G. Roy, President and CEO of Uni-Select.

"We are disappointed with such results and are committed to pursue our optimization plan, reducing the level of indebtedness and achieving our sales strategy to diversify and increase market share to improve our performance. We will also benefit from the formal review of our strategic alternatives centered on our US automotive parts distribution activities to leverage our assets, expertise and capabilities" added Mr. Roy.

During the quarter, the Corporation has continued the implementation of its distribution network optimization plan resulting in closing seven corporate stores and moving its US national DC within an existing facility. Furthermore, as per its objective to firmly manage its working capital, the Corporation has been able to generate more cash flow from operating activities despite a lower EBITDA.

Finally, the Board of Directors of Uni-Select declared a dividend of CAD$0.13 per share payable on July 19, 2013 to shareholders of record on June 30, 2013. This dividend is an eligible dividend for tax purposes.

Conference Call

Uni-Select will host a conference call to discuss its 2013 first quarter results on May 1, 2013 at 4 PM (EST). To join the conference, dial 1 866 696-5910 followed by 8567461.

About Uni-Select

Founded 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 6^th largest distributor in the United States and the leading independent distributor of automotive paint and related products in the country. With its 6,000 employees, Uni-Select efficiently services a wide network of independent installers and wholesalers, including over 6,200 that operate under its banner programs 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.

(1) "EBITDA" represents operating profit before finance costs, depreciation and amortization, equity income, net gain on disposal of property and equipment, income taxes and net earnings attributable to non-controlling interests. 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.

(2) "Adjusted EBITDA" is used to assess adjusted EBITDA, adjusted earnings and adjusted earnings per share to assess EBITDA from operating activities, excluding certain adjustments which may affect the comparability of the Corporation's financial results. Management is of the view that these measures are more representative of the Corporation's operational performance and more appropriate in providing additional information.

(3) "Adjustments" are unusual incurred costs that Management regards as not being characteristic or representative of the Corporation's regular operations. They include, amongst others, the non-capitalizable costs related to the development and implementation of the ERP system, costs related to the closure and disposal of stores, restructuring charges, write-off of assets and others, as well as net gain on disposal of property and equipment. The exclusion of these items does not indicate that they are non-recurring.

(4) "Total net indebtedness" consists of bank indebtedness and long-term debt (including short-term portion), net of cash.

Additional Information

The Management Report and the unaudited financial statements as well as accompanying notes for the First Quarter of 2013 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.

UNI-SELECT INC.
CONSOLIDATED STATEMENT OF EARNINGS
(In thousands of US dollars, except per share amounts, unaudited)
		Three-month period ended March 31,
		2013		2012
		$		$
Sales		421,820		445,260
Earnings before the following items:		15,928		23,908
Finance costs, net (Note 5)		4,069		5,117
Depreciation and amortization (Note 6)		7,544		6,026
		4,315		12,765
Equity income		558		654
Earnings before income taxes		4,873		13,419
Income tax expense (recovery) (Note 8)
	Current	(700	)	8,044
	Deferred	(571	)	(5,615	)
		(1,271	)	2,429
Net earnings		6,144		10,990
Attributable to shareholders		6,144		11,081
Attributable to non-controlling interests		-		(91	)
Net earnings		6,144		10,990
Earnings per share, basic and diluted (Note 7)		0.29		0.51
Weighted average number of common shares outstanding (in thousands) (Note 7)
	Basic	21,500		21,636
	Diluted	21,500		21,637
The Consolidated Statement of Earnings by nature is presented in Note 18.
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,
		2013		2012
		$		$
Net earnings		6,144		10,990
Other comprehensive income
Items that may be subsequently reclassified to net earnings:
	Effective portion of changes in the fair value of cash flow hedges (net of income tax expense of $107 (recovery of $100 in 2012))	291		(271	)
	Net change in the fair value of derivative financial instruments designated as cash flow hedges transferred to earnings (net of income taxes of $98 ($180 in 2012))	266		483
	Unrealized exchange gains (losses) on the translation of financial statements to the presentation currency	4,823		(4,505	)
	Unrealized exchange gains (losses) on the translation of debt designated as a hedge of net investments in foreign operations	(6,773	)	5,999
		(1,393	)	1,706
Items that will not be subsequently reclassified to net earnings:
	Actuarial gain on defined benefit pension plans (net of income taxes of $372 ($212 in 2012))	993		577
Other comprehensive income (loss)		(400	)	2,283
Comprehensive income		5,744		13,273
Attributable to shareholders		5,744		13,364
Attributable to non-controlling interests		-		(91	)
Comprehensive income		5,744		13,273

The 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 shareholders
		Share capital		Contributed surplus		Equity component of the convertible debentures	Retained earnings		Accumulated other comprehensive income (Note 15)		Total		Attributable to non-controlling interests		Total equity
		$		$		$	$		$		$		$		$
Balance, December 31, 2012		88,563		392		1,687	384,906		8,657		484,205		-		484,205
Net earnings		-		-		-	6,144		-		6,144		-		6,144
Other comprehensive income		-		-		-	993		(1,393	)	(400	)	-		(400	)
Comprehensive income		-		-		-	7,137		(1,393	)	5,744		-		5,744
Contributions by and distributions to shareholders
	Share repurchases (Note 12)	(397	)	-		-	(1,565	)	-		(1,962	)	-		(1,962	)
	Dividends	-		-		-	(2,724	)	-		(2,724	)	-		(2,724	)
	Stock-based compensation (Note 13)	-		314		-	-		-		314		-		314
		(397	)	314		-	(4,289	)	-		(4,372	)	-		(4,372	)
Balance, March 31, 2013		88,166		706		1,687	387,754		7,264		485,577		-		485,577
Balance, December 31, 2011		88,940		452		1,687	367,272		6,229		464,580		1,033		465,613
Net earnings		-		-		-	11,081		-		11,081		(91	)	10,990
Other comprehensive income		-		-		-	577		1,706		2,283		-		2,283
Comprehensive income		-		-		-	11,658		1,706		13,364		(91	)	13,273
Contributions by and distributions to shareholders
	Share repurchases (Note 12)	(3	)	-		-	(10	)	-		(13	)	-		(13	)
	Dividends	-		-		-	(2,832	)	-		(2,832	)	-		(2,832	)
	Stock-based compensation (Note 13)	-		10		-	-		-		10		-		10
		(3	)	10		-	(2,842	)	-		(2,835	)	-		(2,835	)
Changes in ownership interests in subsidiaries that do not result in a loss of control
	Buy-back of non-controlling interests	-		(98	)	-	-		-		(98	)	(955	)	(1,053	)
	Foreign exchange translation adjustment on non-controlling interests	-		-		-	-		-		-		13		13
Balance, March 31, 2012		88,937		364		1,687	376,088		7,935		475,011		-		475,011

The 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,
		2013		2012
		$		$
OPERATING ACTIVITIES
Net earnings		6,144		10,990
Non-cash items
	Finance costs, net (Note 5)	4,069		5,117
	Depreciation and amortization (Note 6)	7,544		6,026
	Income tax expense (recovery) (Note 8)	(1,271	)	2,429
	Other non-cash items	471		(10	)
Changes in working capital items		(742	)	(13,432	)
Interest paid		(4,927	)	(6,117	)
Income taxes paid		(732	)	(2,119	)
Cash flows from operating activities		10,556		2,884
INVESTING ACTIVITIES
Business acquisitions		(953	)	(1,570	)
Balances of purchase price		(116	)	(364	)
Advances to merchant members		(3,108	)	(2,413	)
Receipts on investments and advances to merchant members		2,476		1,446
Acquisitions of property and equipment		(4,452	)	(1,279	)
Disposals of property and equipment		176		122
Acquisitions and development of intangible assets		(728	)	(5,099	)
Cash flows used in investing activities		(6,705	)	(9,157	)
FINANCING ACTIVITIES
Increase in long-term debt		196,939		21,214
Repayment of long-term debt		(195,613	)	(12,445	)
Merchant members' deposits in the guarantee fund		(503	)	(116	)
Share repurchases (Note 12)		(1,962	)	(13	)
Dividends paid		(2,739	)	(2,616	)
Cash flows from (used in) financing activities		(3,878	)	6,024
Effects of fluctuations in exchange rates on cash		(2	)	19
Decrease in cash		(29	)	(230	)
Cash, beginning of period		122		1,055
Cash, end of period		93		825
The 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,	December 31,
		2013	2012
		$	$
ASSETS
Current assets
	Cash	93	122
	Trade and other receivables	216,937	203,186
	Income taxes receivable	28,987	27,917
	Inventory	524,162	528,634
	Prepaid expenses	11,244	11,527
	Total current assets	781,423	771,386
Equity investments and advances to merchant members		36,775	36,249
Property and equipment (Note 9)		48,130	49,731
Intangible assets (Note 10)		149,934	153,572
Goodwill (Note 10)		186,268	187,081
Deferred tax assets		41,510	41,926
TOTAL ASSETS		1,244,040	1,239,945
LIABILITIES
Current liabilities
	Trade and other payables	321,509	313,496
	Dividends payable	2,743	2,815
	Current portion of long-term debt and merchant members' deposits in the guarantee fund	3,969	19,073
	Total current liabilities	328,221	335,384
Long-term employee benefit obligations		24,219	26,903
Long-term debt (Note 11)		305,982	290,476
Convertible debentures		48,316	49,099
Merchant members' deposits in the guarantee fund		7,099	7,768
Derivative financial instruments		1,128	1,891
Deferred tax liabilities		43,498	44,219
TOTAL LIABILITIES		758,463	755,740
EQUITY
Share capital (Note 12)		88,166	88,563
Contributed surplus		706	392
Equity component of the convertible debentures		1,687	1,687
Retained earnings		387,754	384,906
Accumulated other comprehensive income (Note 15)		7,264	8,657
TOTAL EQUITY		485,577	484,205
TOTAL LIABILITIES AND EQUITY		1,244,040	1,239,945
The accompanying notes are an integral part of the Interim Consolidated Financial Statements.