BOUCHERVILLE, QUEBEC--(Marketwire - Aug. 2, 2011) - Uni-Select Inc. (TSX:UNS) had sales of 475 million dollars in the second quarter of 2011, compared to 349 million dollars in 2010. Net earnings increased to 18.5 million dollars in the second quarter of 2011 or $0.85 per share compared to 14.5 million dollars or $0.74 per share last year.
(Unless otherwise indicated, all the amounts in this press release are expressed in US dollars.)
| (In million, except earnings per share) | 2nd QUARTER | 1st SEMESTER | ||
| 2011 | 2010 | 2011 | 2010 | |
| Sales | 474.6 | 349.2 | 871.4 | 644.6 |
| Adjusted EBITDA | 33.3 | 24.7 | 56.4 | 39.7 |
| EBITDA | 32.3 | 23.6 | 54.0 | 37.4 |
| Adjusted earnings | 19.1 | 15.3 | 30.5 | 23.2 |
| Net earnings | 18.5 | 14.5 | 28.2 | 21.7 |
| Adjusted earnings per share | 0.88 | 0.77 | 1.41 | 1.18 |
| Net earnings per share | 0.85 | 0.74 | 1.30 | 1.10 |
The increase in total sales stems primarily from the addition of FinishMaster's operations combined with an organic growth of 1.8%. Sales from Canadian operations reached 149.9 million dollars, an increase of 2.0% compared to the corresponding quarter of 2010. American operations, for their part, recorded an organic increase of 1.8% to attain 324.8 million dollars.
The EBITDA margin adjusted for costs related to IT development and reorganisation of the distribution network equal 7.0% in the second quarter of 2011, a slight decrease from the corresponding quarter in 2010. This variation mainly comes from the rising energy prices as well as the negative changes in the product lines sold.
"We are pleased to report results that show strong growth. The last few months have confirmed the various strategic elements associated with the FinishMaster acquisition. The synergies announced earlier this year for 2011 were realized and those planned for 2012 are already well underway. Synergies will arise from the complementarity of business models, distribution networks and additional sales opportunities. We are very confident that we can reach the expected 10 million per year synergies within three years" declared Mr. Richard G. Roy, President and CEO of Uni-Select.
"As mentioned during the last quarters, the implementation of the integrated enterprise resource planning system started in April, as planned. The final testing phase of two pilot warehouses is almost complete and the implementation will gradually continue throughout the year to finish at the end of 2012, in accordance with the initial schedule. The improvement of corporate stores' performance, increase in sales and asset management are at the heart of the initiatives that we will pursue throughout 2011. Finally, total debt has been reduced by 50 million dollars during the second quarter." added Mr. Roy.
For the first semester of 2011, sales amounted to 871 million dollars, compared to 645 million dollars for the same period of last year. Net earnings rose to 28.2 million dollars or $1.30 per share compared to net earnings of 21.7 million dollars or $1.10 per share for the corresponding period of last year.
Total sales from the American operations reached 606 million dollars for the first semester of 2011 compared to 396 million dollars for the same period of 2010.
For the first semester of 2011, Canadian operations reached total sales of 265 million dollars compared to 248 million dollars for the same period of last year. If we exclude the impact of the exchange rate, organic growth was close to 2.0%.
Finally, the Board of Directors of Uni-Select Inc. approved the payment on October 19, 2011 of a quarterly dividend of $0.12 Canadian per common share to shareholders of record at September 30, 2011. This dividend is an eligible dividend for tax purposes.
About Uni-Select Inc.
Founded in 1968, Uni-Select™ is a Canadian leader in the distribution of automotive replacement parts, equipment, tools and accessories. Uni-Select USA, Inc., a subsidiary of the Uni-Select, offers the same products and services to its customers in the United States, where it is the 6th largest distributor; in addition, Uni-Select is, in this market, the premier independent distributor of coatings, body and equipment products to the collision repair industry. 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 Montreal. Uni-Select shares (UNS) are traded on the TSX.
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 new 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, interest, income taxes, non-controlling interest and loss from discontinued operations. This measurement is a widely accepted financial indicator of a company'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 plus non-recurring costs. 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.
- "Non-recurring items": 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 management software suite, costs of integrating recently acquired companies and costs related to the reorganisation of the distribution network.
Additional Information
It is possible to consult the management report and the unaudited financial statements as well as accompanying notes for the second quarter of 2011 in the "Investor Information" section found at the Corporation's website at: www.uniselect.com as well as on SEDAR's website: www.sedar.com. The reader will also find on these websites the Corporation's annual management report as well as other information related to Uni-Select, including the annual notice.
Conference Call with the Financial Community
Tuesday August 2, 2011, at 3:00 pm (EST), Uni-Select will host a conference call for the financial community. To join the conference, dial 1-866-696-5910 followed by the access code 8567461.
| Uni-Select Inc. Consolidated Statement of Earnings |
||||||||||
| Three-month and six-month periods ended June 30, 2011 and 2010 | ||||||||||
| (In thousands of US dollars, except earnings per share, unaudited) | ||||||||||
| 2nd quarter | 6 months | |||||||||
| Note | 2011 | 2010 | 2011 | 2010 | ||||||
| $ | $ | $ | $ | |||||||
| Sales | 474,645 | 349,184 | 871,429 | 644,642 | ||||||
| Earnings before the following items: | 32,303 | 23,591 | 54,003 | 37,396 | ||||||
| Net gain on disposal of property and equipment | – | – | (1,728 | ) | – | |||||
| Acquisition-related costs | 7 | – | – | 2,976 | – | |||||
| Finance costs, net | 5 | 4,187 | 1,138 | 8,715 | 2,697 | |||||
| Depreciation and amortization | 6 | 5,231 | 3,128 | 10,180 | 6,398 | |||||
| Earnings before income taxes | 22,885 | 19,325 | 33,860 | 28,301 | ||||||
| Income taxes | 9 | |||||||||
| Current | (2,074 | ) | 2,381 | 7,840 | 12,956 | |||||
| Deferred | 6,616 | 2,467 | (1,825 | ) | (6,234 | ) | ||||
| 4,542 | 4,848 | 6,015 | 6,722 | |||||||
| Net earnings | 18,343 | 14,477 | 27,845 | 21,579 | ||||||
| Attributable to shareholders | 18,504 | 14,521 | 28,166 | 21,702 | ||||||
| Attributable to non-controlling interests | (161 | ) | (44 | ) | (321 | ) | (123 | ) | ||
| 18,343 | 14,477 | 27,845 | 21,579 | |||||||
| Earnings per share | 8 | |||||||||
| Basic | 0.85 | 0.74 | 1.30 | 1.10 | ||||||
| Diluted | 0.84 | 0.74 | 1.30 | 1.10 | ||||||
| Weighted average number of shares outstanding | ||||||||||
| (in thousands) | 8 | |||||||||
| Basic | 21,691 | 19,722 | 21,626 | 19,719 | ||||||
| Diluted | 22,963 | 19,730 | 22,856 | 19,729 | ||||||
| Actual shares outstanding (in thousands) | 21,691 | 19,722 | 21,691 | 19,722 | ||||||
| The statement of earnings by nature required by International Financial Reporting Standards (IFRS) is presented in Note 17. |
The accompanying notes are an integral part of the consolidated financial statements.
| Uni-Select Inc. | |||||||||
| Consolidated Statement of Comprehensive Income | |||||||||
| Three-month and six-month periods ended June 30, 2011 and 2010 | |||||||||
| (In thousands of US dollars, except earnings per share, unaudited) | |||||||||
| 2nd quarter | 6 months | ||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||
| $ | $ | $ | $ | ||||||
| Net earnings | 18,343 | 14,477 | 27,845 | 21,579 | |||||
| Other comprehensive income | |||||||||
| Effective portion of changes in fair value of cash flow hedges (net of incomes taxes of $140 and $159 for the three-month and six-month periods ($146 and $672 in 2010)) | (390 |
) |
(948 |
) |
(442 |
) |
(2,160 |
) |
|
| Net change in fair value of derivative financial instrument designated as cash flow hedges transferred to earnings (net of income taxes of $219 and $453 for the three-month and six-month periods ($264 and $521 in 2010)) | 607 |
732 |
1,240 |
1,480 |
|||||
| 217 | (216 | ) | 798 | (680 | ) | ||||
| Unrealized exchange gains (losses) on translation of financial statements to presentation currency | 453 |
463 |
(2,221 |
) |
(54 |
) |
|||
| Unrealized exchange gains (losses) on translation of long-term debt designated as a hedge of net investments in foreign operations | 196 |
(7,469 |
) |
6,053 |
(2,255 |
) |
|||
| Other comprehensive income | 866 | (7,222 | ) | 4,630 | (2,989 | ) | |||
| Comprehensive income | 19,209 | 7,255 | 32,475 | 18,590 | |||||
| Attributable to shareholders | 19,370 | 7,299 | 32,796 | 18,713 | |||||
| Attributable to non-controlling interests | (161 | ) | (44 | ) | (321 | ) | (123 | ) | |
| 19,209 | 7,255 | 32,475 | 18,590 | ||||||
The accompanying notes are an integral part of the consolidated financial statements.
| Uni-Select Inc. |
| Consolidated Statement of Changes in Equity |
| Six-month periods ended June 30, 2011 and 2010 |
| (In thousands of US dollars, except earnings per share, unaudited) |
Note |
Share capital |
Cumulative translation account |
Accumulated changes in fair value of derivative financial instrument designated as cash flow hedge |
Equity component of convertible debentures and contributed surplus |
Retained earnings |
Total |
Non-controlling interest |
Total equity |
|||||||||
| Balance at January 1, 2010 | 39,046 | – | (3,515 | ) | 298 | 308,326 | 344,155 | 3,256 | 347,411 | ||||||||
| Net earnings (loss) for the period | – | – | – | – | 21,702 | 21,702 | (123 | ) | 21,579 | ||||||||
| Other comprehensive income for the period | – | (2,309 | ) | (680 | ) | – | – | (2,989 | ) | – | (2,989 | ) | |||||
| Total comprehensive income for the period | – | (2,309 | ) | (680 | ) | – | 21,702 | 18,713 | (123 | ) | 18,590 | ||||||
| Contributions by and distributions to shareholders | |||||||||||||||||
| Shares issuance | 89 | – | – | – | – | 89 | – | 89 | |||||||||
| Dividends | – | – | – | – | (4,458 | ) | (4,458 | ) | – | (4,458 | ) | ||||||
| 89 | – | – | – | (4,458 | ) | (4,369 | ) | – | (4,369 | ) | |||||||
| Foreign exchange translation adjustment on non-controlling interest | – |
– |
– |
– |
– |
– |
(41 |
) | (41 |
) | |||||||
| Stock-based compensation expense | – | – | – | 37 | – | 37 | – | 37 | |||||||||
| Balance at June 30, 2010 | 39,135 | (2,309 | ) | (4,195 | ) | 335 | 325,570 | 358,536 | 3,092 | 361,628 | |||||||
| Net earnings (loss) for the period | – | – | – | – | 24,192 | 24,192 | (143 | ) | 24,049 | ||||||||
| Other comprehensive income for the period | – | 10,525 | 679 | – | – | 11,204 | – | 11,204 | |||||||||
| Total comprehensive income for the period | – | 10,525 | 679 | – | 24,192 | 35,396 | (143 | ) | 35,253 | ||||||||
| Contributions by and distributions to shareholders | |||||||||||||||||
| Shares redemption | (36 | ) | – | – | – | (330 | ) | (366 | ) | – | (366 | ) | |||||
| Dividends | – | – | – | – | (4,499 | ) | (4,499 | ) | – | (4,499 | ) | ||||||
| (36 | ) | – | – | – | (4,829 | ) | (4,865 | ) | – | (4,865 | ) | ||||||
| Changes in ownership interests in subsidiaries that do not result in a loss of control Buy-back of non-controlling interest |
– |
– |
– |
– |
– |
– |
(488 |
) | (488 |
) | |||||||
| Foreign exchange translation adjustment on non-controlling interest | – |
– |
– |
– |
– |
– |
162 |
162 |
|||||||||
| Stock-based compensation expense | – | – | – | 40 | – | 40 | – | 40 | |||||||||
| Balance at December 31, 2010 | 39,099 | 8,216 | (3,516 | ) | 375 | 344,933 | 389,107 | 2,623 | 391,730 | ||||||||
| Net earnings (loss) for the period | – | – | – | – | 28,166 | 28,166 | (321 | ) | 27,845 | ||||||||
| Other comprehensive income of the period | – | 3,832 | 798 | – | – | 4,630 | – | 4,630 | |||||||||
| Total comprehensive income for the period | – | 3,832 | 798 | – | 28,166 | 32,796 | (321 | ) | 32,475 | ||||||||
| Contributions by and distributions to shareholders | |||||||||||||||||
| Shares issuance (net of share issuance costs of $2,706) | 12 |
49,980 |
– |
– |
– |
– |
49,980 |
– |
49,980 |
||||||||
| Issuance of convertible debentures, net of tax effect | 11 | – | – | – | 2,418 | – | 2,418 | – | 2,418 | ||||||||
| Dividends | – | – | – | – | (5,393 | ) | (5,393 | ) | – | (5,393 | ) | ||||||
| 49,980 | – | – | 2,418 | (5,393 | ) | 47,005 | – | 47,005 | |||||||||
| Changes in ownership interests in subsidiaries | |||||||||||||||||
| that do not result in a loss of control | |||||||||||||||||
| Buy-back of non-controlling interest | – | – | – | – | – | – | (229 | ) | (229 | ) | |||||||
| Foreign exchange translation adjustment | |||||||||||||||||
| on non-controlling interest | – | – | – | – | – | – | 81 | 81 | |||||||||
| Stock-based compensation expense | – | – | – | 39 | – | 39 | – | 39 | |||||||||
| Balance at June 30, 2011 | 89,079 | 12,048 | (2,718 | ) | 2,832 | 367,706 | 468,947 | 2,154 | 471,101 | ||||||||
The accompanying notes are an integral part of the consolidated financial statements.
| Uni-Select Inc. Consolidated Statement of Cash Flows | ||||||||||
| Three-month and six-month periods ended June 30, 2011 and 2010 | ||||||||||
| (In thousands of US dollars, except earnings per share, unaudited) | ||||||||||
| 2nd quarter | 6 months | |||||||||
| Note | 2011 | 2010 | 2011 | 2010 | ||||||
| $ | $ | $ | $ | |||||||
| OPERATING ACTIVITIES | ||||||||||
| Net earnings | 18,343 | 14,477 | 27,845 | 21,579 | ||||||
| Non-cash items | ||||||||||
| Depreciation and amortization | 6 | 5,231 | 3,128 | 10,180 | 6,398 | |||||
| Income tax expense | 4,542 | 4,848 | 6,015 | 6,722 | ||||||
| Compensation cost relating to stock option plans | 20 | 18 | 39 | 37 | ||||||
| Pension expense in excess of contributions | (182 | ) | 283 | (90 | ) | 531 | ||||
| Finance costs, net | 5 | 4,187 | 1,138 | 8,715 | 2,697 | |||||
| Net gain on disposal of property and equipment | - | - | (1,728 | ) | – | |||||
| 32,141 | 23,892 | 50,976 | 37,964 | |||||||
| Changes in working capital items | 34,759 | 7,303 | (26,517 | ) | (27,301 | ) | ||||
| Interests paid | (2,989 | ) | (1,502 | ) | (6,146 | ) | (2,940 | ) | ||
| Income taxes paid | (3,604 | ) | (1,641 | ) | (12,082 | ) | (7,138 | ) | ||
| Cash flows from continuing operating activities | 60,307 | 28,052 | 6,231 | 585 | ||||||
| Cash flows from discontinued operating activities | – | (9 | ) | – | (1,067 | ) | ||||
| Cash flows from operating activities | 60,307 | 28,043 | 6,231 | (482 | ) | |||||
| INVESTING ACTIVITIES | ||||||||||
| Business acquisitions | 7 | - | - | (222,765 | ) | (4,008 | ) | |||
| Buyback of non-controlling interests | 7 | (229 | ) | - | (229 | ) | - | |||
| Business disposals | 157 | 803 | 157 | 2,168 | ||||||
| Balance of purchase price | 80 | 196 | 117 | 1,109 | ||||||
| Advances to merchant members | (3,836 | ) | (342 | ) | (6,607 | ) | (1,026 | ) | ||
| Receipts on advances to merchant members | 699 | 651 | 1,609 | 1,700 | ||||||
| Property and equipment | (1,413 | ) | (2,938 | ) | (4,586 | ) | (5,740 | ) | ||
| Disposal of property and equipment | 4,271 | 366 | 5,681 | 725 | ||||||
| Intangible assets | 10 | (7,951 | ) | (8,778 | ) | (15,138 | ) | (14,955 | ) | |
| Cash flows from investing activities | (8,222 | ) | (10,042 | ) | (241,761 | ) | (20,027 | ) | ||
| FINANCING ACTIVITIES | ||||||||||
| Bank indebtedness | (6,658 | ) | (16,286 | ) | (7,524 | ) | 9,250 | |||
| Long-term debt | 11 | 876 | 33 | 363,211 | 33 | |||||
| Repayment of long-term debt | (42,936 | ) | (36 | ) | (213,975 | ) | (62 | ) | ||
| Merchant members' deposits in guarantee fund | 125 | 176 | 227 | 237 | ||||||
| Issuance of convertible debentures, net of issuance costs | 11 | - | - | 49,777 | – | |||||
| Issuance of shares, net of issuance costs | 12 | - | - | 49,361 | 89 | |||||
| Dividends paid | (2,778 | ) | (2,215 | ) | (5,074 | ) | (4,460 | ) | ||
| Cash flows from financing activities | (51,371 | ) | (18,328 | ) | 236,003 | 5,087 | ||||
| Effect of exchange rate changes on cash | - | 477 | 2 | 477 | ||||||
| Increase (Decrease) in cash | 714 | 149 | 475 | (14,945 | ) | |||||
| Cash, beginning of period | 140 | 49 | 379 | 15,144 | ||||||
| Cash, end of period | 854 | 198 | 854 | 198 | ||||||
The accompanying notes are an integral part of the consolidated financial statements.
| Uni-Select Inc. | ||||||
| Consolidated Statement of Financial Position | ||||||
| June 30, 2011, December 31, 2010 and January 1, 2010 | ||||||
| (In thousands of US dollars, except earnings per share, unaudited) | ||||||
| Note | June 30, 2011 | December 31, 2010 | January 1, 2010 | |||
| $ | $ | $ | ||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash | 854 | 379 | 15,144 | |||
| Trade and other receivables | 228,340 | 157,219 | 143,742 | |||
| Income taxes receivable | 11,067 | 7,020 | 3,687 | |||
| Inventory | 493,778 | 404,336 | 375,255 | |||
| Prepaid expenses | 11,965 | 7,492 | 6,052 | |||
| Assets related to discontinued operations | – | – | 2,863 | |||
| Total current assets | 746,004 | 576,446 | 546,743 | |||
| Investments and advances to merchant members | 21,404 | 16,854 | 16,082 | |||
| Property and equipment | 40,923 | 34,389 | 37,092 | |||
| Intangible assets | 10 | 146,502 | 59,264 | 27,401 | ||
| Goodwill | 10 | 184,229 | 94,725 | 89,777 | ||
| Deferred tax assets | 20,131 | 20,025 | 16,699 | |||
| TOTAL ASSETS | 1,159,193 | 801,703 | 733,794 | |||
| LIABILITIES | ||||||
| Current liabilities | ||||||
| Bank indebtedness | 4,191 | 11,455 | 42 | |||
| Trade and other payables | 280,121 | 194,976 | 181,687 | |||
| Dividends payable | 2,682 | 2,294 | 2,195 | |||
| Instalments on long-term debt and on merchant members'deposits in guarantee fund | 10,969 |
269 |
385 |
|||
| Liabilities related to discontinued operations | – | – | 1,532 | |||
| Total current liabilities | 297,963 | 208,994 | 185,841 | |||
| Long-term debt | 11 | 312,724 | 170,610 | 170,373 | ||
| Convertible debentures | 11 | 48,155 | – | – | ||
| Merchant members' deposits in guarantee fund | 8,056 | 7,723 | 6,963 | |||
| Derivative financial instruments | 3,724 | 4,816 | 4,951 | |||
| Deferred tax liabilities | 17,470 | 17,830 | 18,255 | |||
| TOTAL LIABILITIES | 688,092 | 409,973 | 386,383 | |||
| EQUITY | ||||||
| Share capital | 12 | 89,079 | 39,099 | 39,046 | ||
| Contributed surplus | 414 | 375 | 298 | |||
| Equity component of convertible debentures | 11 | 2,418 | – | – | ||
| Retained earnings | 367,706 | 344,933 | 308,326 | |||
| Accumulated other comprehensive income | 9,330 | 4,700 | (3,515 | ) | ||
| TOTAL SHAREHOLDERS' EQUITY | 468,947 | 389,107 | 344,155 | |||
| Non-controlling interest | 2,154 | 2,623 | 3,256 | |||
| TOTAL EQUITY | 471,101 | 391,730 | 347,411 | |||
| TOTAL LIABILITIES AND EQUITY | 1,159,193 | 801,703 | 733,794 | |||
The accompanying notes are an integral part of the consolidated financial statements.
Contact Information:
(450) 641-6903
www.uni-select.com
Mr. Richard G. Roy
President and CEO
Mr. Denis Mathieu
Vice President and Chief Financial Officer