Uni-Sélect Inc.
TSX : UNS

Uni-Sélect Inc.

May 08, 2008 12:26 ET

Uni-Select Inc.: Net Earnings Increase by 4.0% in the First Quarter of 2008

BOUCHERVILLE, QUEBEC--(Marketwire - May 8, 2008) - Uni-Select Inc. (TSX:UNS) recorded an increase in net earnings of 4% for the first quarter of 2008 to reach $6,061,000 or $0.31 per share compared to $5,828,000 or $0.30 per share last year. Sales were reported at $281,698,000 in the first quarter of 2008, an increase of 3.1% compared to sales of $273,165,000 in 2007. The increase in sales for the Company is largely due to the various acquisitions completed in recent quarters partially offset by the unfavorable Canadian exchange rate compared to the US dollar. Excluding the impact of the exchange rate, sales for the Company would have increased by 10.8% and earnings would have been $0.33 per share for the quarter, an increase of 10.0%.

Automotive Group USA's sales in the first quarter reached $149,919,000 compared to $148,538,000 in the first quarter of 2007. The acquisitions completed in recent quarters contributed $26,190,000 to the increase in sales for the first quarter; however this increase was nullified by the impact of the variation in exchange rate. Excluding the impact of the exchange rate, sales for the Group would have increased by 15.1%. The operating margin of the Group improved from 5.3% in the first quarter of 2007 to 6.1% this quarter as a result of continued improvement programs on margins and costs combined with the impact of the recent acquisitions.

Automotive Group Canada reported an increase in sales of 7.2% in the first quarter of 2008 to reach $118,765,000 compared to $110,832,000 in the first quarter of 2007. The acquisitions completed in recent quarters contributed $8,803,000 to the increase in sales of the first quarter. The operating margin of the Group went from 6.0% in the first quarter of last year to 5.4% this quarter. We should note that the results for this period include a non-recurring charge based on a decrease in productivity caused by damages to the roof of the Boucherville distribution center. By excluding the expense of $300,000, the operating income would have been comparable to the same period last year.

Sales for the Heavy Duty Group decreased by 5.7% during the first quarter of 2008 to reach $13,014,000 compared to $13,795,000 in 2007. The operating margin of the Heavy Duty Group was negative at (8.6%) in the first quarter of 2008 compared to (8.3%) last year, primarily due to the decrease in sales.

"In an ever-competitive market, our sales efforts and continuous cost control practices are showing progress" said Mr. Richard G. Roy, President and Chief Executive Officer of Uni-Select. "We are pleased to note the contribution of recent acquisitions to the results of the Company. During the upcoming quarters, the results of our Canadian and US operations will continue to benefit from the contributions of acquisitions completed in recent quarters. We intend to continue our search for expansion projects in Canada and in the United States. The strength of the Canadian dollar versus the US dollar facilitate this expansion. We note, however, that based on the actual rate of $1.02, the variation in the dollar will have a negative impact on the results for the next quarter which should be similar to the one registered in the first quarter. This impact does not affect our business development plans in the United States. Finally, we are noticing a slight decrease in the North American demand for automotive parts which is due to the increase in fuel prices. Our experience leads us to believe that this phenomenon is temporary and that consumers have historically adapted to this situation."

The Board of Directors of Uni-Select Inc. declared a quarterly dividend of $0.1075 per common share payable on July 21, 2008 to shareholders of record as at June 30, 2008.

Uni-Select is Canada's second largest distributor of automotive replacement parts, equipment, tools and accessories and, through Uni-Select USA, Inc., the Company also provides services to customers in the United States where it is the 7th largest distributor. Its subsidiary, Palmar Inc., sells replacement parts, tools and accessories for heavy-duty vehicles and wheels in Canada. The Uni-Select Network includes over 2,000 independent jobbers and services over 3,000 points of sale in Canada and the United States. Uni-Select is headquartered in Montreal. Uni-Select shares (UNS) are traded on the TSX.

Certain statements made in this press release contain forward-looking statements which, by their very nature, include risks and uncertainties, such that actual results could differ from those indicated in those forward-looking statements. For additional information with respect to the risks and uncertainties, refer to the Annual Report filed by Uni-Select and available on SEDAR. Unless required to do so pursuant to applicable securities legislation, Uni-Select assumes no obligation as to the updating or revision of the forward-looking statements as a result of new information, future events or other changes.

Notice related to the review of interim financial statements

The consolidated interim financial statements for the period ended March 31, 2008 have not been reviewed by the auditors of the Company.




CONSOLIDATED EARNINGS
THREE-MONTH PERIODS ENDED MARCH 31, 2008 AND 2007
(in thousands of dollars, except earnings per share, unaudited)

3 MONTHS
2008 2007
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$ $
SALES 281,698 273,165
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Earnings before the following items 14,532 13,402
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Interest (Note 4) 1,899 1,337
Amortization (Note 4) 2,696 2,276
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4,595 3,613
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Earnings before income taxes and non-controlling
interest 9,937 9,789
Income taxes
Current 2,802 3,466
Future 395 (118)
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3,197 3,348
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Earnings before non-controlling interest 6,740 6,441
Non-controlling interest 679 613
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Net earnings 6,061 5,828
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Basic earnings and diluted earnings per share (Note 5) 0.31 0.30
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Number of issued and outstanding shares 19,736,558 19,725,154
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The accompanying notes are an integral part of the interim consolidated
financial statements




CONSOLIDATED RETAINED EARNINGS
THREE-MONTH PERIODS ENDED MARCH 31, 2008 AND 2007
(in thousands of dollars, unaudited)
3 MONTHS
2008 2007
--------------------------------------------------------------------------
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$ $
Balance, beginning of period 287,712 255,355
Net earnings 6,061 5,828
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293,773 261,183
Dividends 2,122 2,119
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Balance, end of period 291,651 259,064
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CONSOLIDATED COMPREHENSIVE INCOME
THREE-MONTH PERIODS ENDED MARCH 31, 2008 AND 2007
(in thousands of dollars, unaudited)
3 MONTHS
2008 2007
--------------------------------------------------------------------------
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$ $
Net earnings 6,061 5,828
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Other comprehensive income:

Unrealized losses on derivative financial
instruments designated ascash flow hedges,
net of income taxes of $659 (1,414) -

Reclassification of realized gains (losses)
to net earnings on derivative financial
instruments designated as cash flow hedges,
net of income taxes of $21 ($20 in 2007) 46 (43)

Unrealized gains (losses) on translating financial
statements of self sustaining foreign operations 5,830 (1,237)
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Other comprehensive income 4,462 (1,280)
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Comprehensive income 10,523 4,548
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The accompanying notes are an integral part of the interim consolidated
financial statements



CONSOLIDATED CASH FLOWS
THREE-MONTH PERIODS ENDED MARCH 31, 2008 AND 2007
(in thousands of dollars, except dividends paid per share, unaudited)

3 MONTHS
2008 2007
--------------------------------------------------------------------------
$ $
OPERATING ACTIVITIES
Net earnings 6,061 5,828
Non-cash items
Amortization 2,696 2,276
Amortization of deferred gain on a sale-leaseback
arrangement (54) (13)
Future income taxes 395 (118)
Non-controlling interest 679 613
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9,777 8,586
Changes in working capital items (9,922) (21,400)
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CASH FLOWS FROM OPERATING ACTIVITIES (145) (12,814)
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INVESTING ACTIVITIES
Business acquisitions (Note 6) (18,397) (3,597)
Advances to merchant members (689) (636)
Receipts on advances to merchant members 565 955
Fixed assets (2,368) (1,655)
Disposal of fixed assets 51 5,452
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CASH FLOWS FROM INVESTING ACTIVITIES (20,838) 519
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FINANCING ACTIVITIES
Bank indebtedness 23,995 13,959
Balance of purchase price (337) (393)
Financing costs (414) -
Long-term debt 11 472
Repayment of long-term debt (65) (708)
Merchant members' deposits in guarantee fund (6) (289)
Issuance of shares - 367
Dividends paid (2,122) (1,970)
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CASH FLOWS FROM FINANCING ACTIVITIES 21,062 11,438
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Increase (decrease) in cash and cash equivalents 79 (857)
Cash and cash equivalents, beginning of period 599 1,130
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Cash and cash equivalents, end of period 678 273
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Dividends paid per share 0.108 0.100
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The accompanying notes are an integral part of the interim consolidated
financial statements.



CONSOLIDATED BALANCE SHEETS
MARCH 31, 2008 AND 2007 AND DECEMBER 31, 2007
(in thousands of dollars, unaudited)

MARCH 31, MARCH 31, DEC. 31,
2008 2007 2007
Audited
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$ $ $
ASSETS
CURRENT ASSETS
Cash and cash equivalents 678 273 599
Temporary investment - 6,897 -
Accounts receivable 149,810 146,661 141,043
Income taxes receivable 5,182 9,349 1,370
Inventory (Note 7) 356,108 313,364 341,545
Prepaid expenses 5,097 5,314 4,959
Derivative financial instrument - 191 -
Future income taxes 8,812 6,577 8,671
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525,687 488,626 498,187
Investments and volume discounts
receivable 7,412 6,225 7,406
Fixed assets 42,354 37,702 41,526
Financing costs 848 788 488
Covenants not to compete 303 524 330
Goodwill 73,450 44,927 64,858
Future income taxes 3,265 1,637 2,778
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653,319 580,429 615,573
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LIABILITIES
CURRENT LIABILITIES
Bank indebtedness (Note 8) 61,058 41,565 35,887
Accounts payable 128,886 134,579 132,660
Dividends payable 2,122 2,119 2,122
Instalments on long-term debt and
on merchant members' deposits
in guarantee fund 57 100 577
Future income taxes - 61 -
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192,123 178,424 171,246
Deferred gain on a sale-leaseback
arrangement 2,377 1,823 2,338
Long-term debt 95,671 62,365 91,786
Merchant members' deposits in
guarantee fund 7,613 7,949 7,294
Derivative financial instrument 2,006 - -
Future income taxes 3,972 5,089 3,838
Non-controlling interest 36,583 29,877 34,498
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340,345 285,527 311,000
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SHAREHOLDERS' EQUITY
Capital stock 49,872 49,711 49,872
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Retained earnings 291,651 259,064 287,712
Accumulated other comprehensive
income (Note 9) (28,549) (13,873) (33,011)
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263,102 245,191 254,701
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312,974 294,902 304,573
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653,319 580,429 615,573
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The accompanying notes are an integral part of the interim consolidated
financial statements.


1. BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements are prepared in accordance with Canadian generally accepted accounting principles for interim financial statements and do not include all disclosures required for complete financial statements. They are also consistent with the accounting policies outlined in the audited financial statements of the Company for the year ended December 31, 2007. The interim financial statements and related notes should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2007. When necessary, the financial statements include amounts based on informed estimates and the best judgment of management. The operating results for the interim periods reported are not necessarily indicative of results to be expected for the year.

2. CHANGES IN ACCOUNTING POLICIES Financial instruments

On January 1, 2008, in accordance with the applicable transitional provisions, the Company adopted the new recommendations of the CICA Handbook included in Section 3862 Financial Instruments - Disclosures and Section 3863 Financial Instruments - Presentation . Section 3862 describes the required disclosures related to the significance of financial instruments on the financial position and performance of the Company and the nature and extent of risks arising from financial instruments to which the Company is exposed and how the Company manages those risks. Section 3863 establishes standards for presentation of financial instruments and non-financial derivatives.

The adoption of these Sections resulted in the Company presenting additional disclosure regarding risk management arising from financial instruments and a sensitivity analysis regarding interest rate risk. Comparative information about the nature and extent of risks arising from financial instruments is not required in the year those Sections are adopted.

Capital disclosures

On January 1, 2008, in accordance with the applicable transitional provisions, the Company adopted the new recommendations of the CICA Handbook included in Section 1535 Capital Disclosures . This Section establishes standards for disclosing information about the capital of the Company and how it is managed to enable users of financial statements to evaluate the objectives, policies and procedures of the Company for managing capital.

Inventories

On January 1, 2008, in accordance with the applicable transitional provisions, the Company adopted the new recommendations of the CICA Handbook included in Section 3031 Inventories . This Section provides new guidance on the determination of cost and its subsequent recognition as an expense, including any write-downs to the net realizable value as well as on the cost formulas that are used to assign costs to inventories. The Section also requires additional disclosure.

The adoption of this Section resulted in the Company expanding its disclosure in a new note on inventory.

3. ACCOUNTING POLICIES

Cost of inventory

Cost of inventory recognized as an expense includes cost of goods sold for distribution centres and corporate stores and warehouse expenses, delivery expenses and occupancy costs for distribution centres.

Comparative figures

Certain comparative figures have been reclassified to conform with the presentation adopted in the current year.

4. INFORMATION INCLUDED IN THE CONSOLIDATED EARNINGS



3 MONTHS
Interest 2008 2007
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$ $

Interest on bank indebtedness 826 474
Interest on long-term debt 1,114 1,011
Interest on merchant members' deposits in guarantee fund 84 104
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2,024 1,589
Interest income on cash and cash equivalents (10) (133)
Interest income from merchant members (115) (119)
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1,899 1,337
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Amortization
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Amortization of fixed assets 2,592 2,128
Amortization of other assets 104 148
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2,696 2,276
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5. EARNINGS PER SHARE

Weighted average number of shares for the calculation of basic earnings per share is 19,736,558 (19,711,957 in 2007). Impact of stock options exercised for the first quarter of 2008 is 23,138 shares (39,752 for first quarter of 2007) which total a weighted average number of shares of 19,759,696 (19,751,709 in 2007) for calculation of diluted earnings per share.

6. BUSINESS ACQUISITIONS

In 2008, the Company acquired the shares of one company in the Automotive Canada segment as well as the assets and a portion of the liabilities of one company operating in the Automotive Canada segment and two companies in the Automotive USA segment.

In addition, the Company increased its interest by 3.85% in its joint venture, Uni-Select Pacific Inc. Following this transaction, the Company's interest in the joint venture increased from 65.38% to 69.23% . This transaction was carried out at the carrying amount.

The operating results are consolidated in the statement of earnings since the acquisition date.



The preliminary purchase price is allocated as follows:
Total
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$
Current assets 15,455
Fixed assets 458
Other long-term assets 22
Goodwill 7,189
Current liabilities (3,843)
Long-term liabilities (24)
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19,257
Cash of companies acquired 249
Total consideration paid less cash acquired 18,397
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Balance of purchase price payable 611
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7. INVENTORY

Cost of inventory recognized as an expense for the three-month period ended March 31, 2008 is $218,437 ($215,108 for the three-month period ended March 31, 2007).

For the three-month periods ended March 31, 2008 and 2007, net earnings were not affected by write-downs of inventories.

8. CREDIT FACILITY

The Company has a credit facility in the amount of $325,000. This credit facility is composed of a $235,000 revolving credit expiring in October 2011 and, thereafter, renewable annually for additional one-year periods as well as a $90,000 operating credit which is also used for the issuance of letters of guarantee and is renewable annually. As at March 31, 2008, the issued letters of guarantee totalled $5,320 ($5,010 as at December 31, 2007).

The interest rates vary according to the type of loan and the financial ratios achieved by the Company and are set each quarter. As at March 31, 2008, interest rates vary between 3.925% and 5.75% (5.35% and 7.75% as at December 31, 2007).

9. ACCUMULATED OTHER COMPREHENSIVE INCOME



MARCH 31, 2008 DEC. 31, 2007
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$ $
Balance, beginning of period (33,011) -
Balance, as previously reported - (12,766)
Cumulative impact of accounting changes
relating to financial instruments
(net of income taxes of $81) - 173
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Balance, as restated (33,011) (12,593)
Other comprehensive income for the period 4,462 (20,418)
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Balance, end of period (28,549) (33,011)
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10. EMPLOYEE FUTURE BENEFITS

As at March 31, 2008, the Company's pension plans are defined benefit and contribution plans.

For the three-month period ended March 31, 2008, the total expense for the defined contribution pension plans was $257 ($391 in 2007) and $601 ($602 in 2007) for the defined benefit pension plans.

11. GUARANTEES

As per inventory repurchase agreements, the Company has made a commitment to financial institutions to repurchase inventories from some of its customers at a rate of 60% to 75% of the value of inventories for a maximum amount of $62,037 ($61,870 as at December 31, 2007). In the event of proceedings, the inventories would be liquidated in the normal course of the Company's operations. These agreements are for an undetermined period of time. In management's opinion, the likelihood of major payments being made and losses being absorbed is low, since the value of the assets held in guarantee is significantly higher than the Company's commitments.

12. CAPITAL MANAGEMENT

Guided by its low-asset-base-high-utilization philosophy, the Company's objectives when managing capital are:

- Maintain a maximum total net debt / invested capital ratio of 40% to 45%;

- Grant shareholders a growth of the value of their shares by maintaining a return on shareholders' equity of 15% on a long-term basis and paying an annual dividend representing about 20% of the net earnings of the previous year;

- Maintain a maximum funded debt / EBITDA ratio of 3.0 to 3.5.

In the management of capital, the Company includes shareholders' equity, long-term debt, merchant members deposits in guarantee funds and bank indebtedness net of cash and cash equivalents and temporary investment.

The Company manages the capital structure and makes adjustments to it in light of the changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company has several tools, notably a share repurchase-for-cancellation program pursuant to normal course issuer bids and a flexible credit facility allowing it to react quickly to business opportunities. Also, the Company constantly analyzes working capital levels, notably inventory, to ensure that the optimal level is maintained and regularly adjusts quantity to satisfy demand as well as the level of diversification required by customers.

The Company monitors capital on a number of bases, including: total net debt / invested capital ratio, long-term debt / equity ratio, funded debt / EBITDA ratio and return on shareholders' equity ratio.

For the first quarter of 2008, the results of the Company regarding its objectives when managing capital are the following:



MARCH 31, 2008 DEC. 31, 2007
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Total net debt / invested capital ratio(2)(3) 34.3% 30.7%
Long-term debt / equity ratio(2)(3) 33.0% 32.70%
Funded debt / EBITDA ratio (1)(2)(3) 2.12 1.76
Return on shareholders' equity ratio(1)(3) 13.5% 13.9%
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(1) These ratios are calculated over the last 12 months.

(2) Increase in debt ratios comes directly from the increase of bank
indebtedness due to the acquisitions in the last quarters.

(3) Notably, acquisitions in the last quarters did not contribute to the
results of the last 12-month period ended March 31, 2008 proportionally
to the increase in bank indebtedness.


Regarding the credit facility, the Company is required to comply with certain financial ratios which it has done as at March 31, 2008 and December 31, 2007.

13. FINANCIAL INSTRUMENTS

Classification of financial instruments, carrying amount and fair value

Classification of financial instruments as well as their carrying amount and fair value at March 31, 2008 are summarized in the following table.



Carrying Fair
amount value
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Other
Held-for Loans and financial
-trading receivables(1) liabilities Total
$ $ $ $ $
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Financial Assets
Cash and cash
equivalents 678 - - 678 678
Accounts receivable - 149,810 - 149,810 149,810
Investments and volume
discounts receivable - 7,412 - 7,412 7,412
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678 157,222 - 157,900 157,900
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Financial Liabilities
Bank indebtedness - - 61,058 61,058 61,058
Accounts payable - - 128,886 128,886 128,886
Dividends payable - - 2,122 2,122 2,122
Long-term debt - - 95,728 95,728 95,728
Merchant members'
deposits in guarantee
fund - - 7,613 7,613 7,613
Derivative financial
instrument - - 2,006 2,006 2,006
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- - 297,413 297,413 297,413
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(1) Interest income on loans and receivables for the three-month period
ended March 31, 2008 represents $314 ($329 for the three-month period
ended March 31, 2007).


The fair value of accounts receivable, volume discounts receivable, bank indebtedness, accounts payable and dividends payable approximates their carrying amount given the short-term nature of the instruments.

The fair value of investments, long-term debt and merchant members' deposits in guarantee fund is equivalent to their carrying amount since they substantially bear interest at a rate that fluctuates with changes in the prevailing rate.

Derivative financial instruments

During the first quarter of 2008, the Company entered into agreements to swap variable interest rates for a nominal amount of $60,000 for fixed rates ($0 at fixed rates against variable rates at December 31, 2007). The swap agreements, at a rate of 3.94%, expire in three equal portions of $20,000 on January 2011, 2012 and 2013. The fair value of the interest rate swaps is calculated using quotes for similar instruments on the balance sheet date obtained by the Company's financial institution and represents an amount payable by the Company of $2,006 ($0 at December 31, 2007).

Management of risks arising from financial instruments

In the normal course of business, the Company has market exposure primarily consisting of credit risk, liquidity risk, foreign exchange risk and interest rate risk. The Company manages these risk exposures on a ongoing basis. In order to limit the effects of changes in interest rates on its revenues, expenses and cash flows, the Company avails itself of derivative financial instruments.

Credit risk

Credit risk stems primarily from the potential inability of clients to discharge their obligations. The maximum credit risk to which the Company is exposed as at March 31, 2008 represents the carrying amount of accounts receivable.

No account represents more than 10% of total accounts receivable. In order to manage its risk, specific credit limits are determined for certain accounts and reviewed regularly by the Company. Also, the Company holds in guarantee personal property as well as assets of certain customers and those customers are required to contribute to a fund to guarantee a portion of their amounts due to the Company, being the merchant members deposits in guarantee funds. Finally, customers' financial health is examined regularly and monthly analysis are presented to management to ensure that past due amounts are collectible and, if necessary, that measures are taken to limit credit risk. Historically, the Company has never made any significant write-off of its accounts receivable as proven by the average bad debt on sales rate of 0.1% for the last three years.

At March 31, 2008, past-due accounts receivable represent $7,945 and an allowance for doubtful accounts of $3,214 is provided.

Allowance for doubtful accounts and accounts receivable are reviewed at least quarterly and a bad-debt expense is recognized only for accounts receivable for which collection is uncertain.



$
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Balance at December 31, 2007 2,924
Bad-debt expense 290
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Balance at March 31, 2008 3,214
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Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting its obligations on time or at a reasonable cost. The Company manages its liquidity risk on a consolidated basis by using financing sources to maintain its maneuverability, taking into account its operating needs, tax situation and capital requirements. The Company prepares budget cash forecasts to ensure that is has sufficient funds to meet its obligations.

The Company has a renewable credit facility in the amount of $325,000 (Note 8). As at March 31, 2008, the Company benefits from an unused credit facility of approximately $165,000.

Because of cash flows generated by operations and financial resources available, management believes that the liquidity risk is minimal.

Foreign exchange risk

The Company is exposed to foreign exchange risk due to cash held in currency other than that of the reporting entity and due to merchandise and equipment purchased in U.S. dollars. Management considers that fluctuations in the U.S. dollar versus the Canadian dollar will have a minimal impact on net earnings.

Interest rate risk

The Company is exposed to interest rate fluctuations, primarily due to its variable rate debts. The Company manages its interest rate exposure by maintaining an adequate balance of fixed versus variable rate debt by concluding swap agreements to exchange variable rates for fixed rates. As at March 31, 2008, the fixed rate portion of financial debt represents 40% of the total, while the variable rate portion represents 60%.

A 25 basis points rise or fall in interest rates, assuming that all other variables remain the same, would have resulted in a $37 decrease or increase, respectively, in the Company's net earnings for the three-month period ended March 31, 2008, whereas other comprehensive income would have resulted in a $365 increase or decrease, respectively.



14. SEGMENTED INFORMATION
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3 MONTHS
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Automotive Canada Automotive USA
2008 2007 2008 2007
$ $ $ $
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Sales 118,765 110,832 149,919 148,538
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Earnings before interest,
amortization, income taxes and
non-controlling interest (EBITDA) 6,468 6,618 9,177 7,932
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Assets 254,065 236,965 369,622 307,785
Acquisition of fixed assets 1,316 423 1,489 1,478
Acquisition of goodwill 7,096 428 93 439
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Heavy Duty Consolidated
2008 2007 2008 2007
$ $ $ $
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Sales 13,014 13,795 281,698 273,165
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Earnings before interest,
amortization, income taxes
and non-controlling interest
(EBITDA) (1,113) (1,148) 14,532 13,402
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Assets 29,632 35,679 653,319 580,429
Acquisition of fixed assets 21 6 2,826 1,907
Acquisition of goodwill - - 7,189 867
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The Automotive USA segment includes fixed assets for an amount of $17,513 ($14,058 as at March 31, 2007) and goodwill for an amount of $36,205 ($18,127 as at March 31, 2007).

15. FUTURE ACCOUNTING STANDARDS

International Financial Reporting Standards

In February 2008, the Canadian Accounting Standards Board confirmed that the use of International Financial Reporting Standards ("IFRS") established by the International Accounting Standards Board will be required for fiscal years beginning January 1st, 2011 for publicly accountable profit-oriented enterprises. IFRS will replace Canada's current GAAP for those enterprises.

The Company is currently establishing a convergence plan and evaluating the impact of the adoption of IFRS on its consolidated financial statements.

Goodwill and intangible assets

In February 2008, the CICA issued Handbook Section 3064 Goodwill and intangible assets in replacement of Section 3062 Goodwill and other intangible assets . Various changes have been made to other sections of the CICA Handbook for consistency purposes. This new standard is applicable to fiscal years beginning on or after October 1st, 2008. The new Section establishes standards for the recognition, measurement, presentation and disclosure of goodwill and intangible assets subsequent to their initial recognition. The Company will implement this standard in its first quarter of fiscal year 2009 and is currently evaluating the impact of its adoption on its consolidated financial statements.

Contact Information

  • UNI-SELECT INC.
    Mr. Richard G. Roy
    President and Chief Executive Officer
    450-641-2440
    or
    UNI-SELECT INC.
    Mr. Denis Mathieu
    Vice President and Chief Financial Officer
    450-641-2440
    www.uni-select.com