BOUCHERVILLE, QUEBEC, CANADA--(Marketwire - Nov. 8, 2011) - Uni-Select Inc. (TSX:UNS) had sales of 472 million dollars in the third quarter of 2011, compared to 335 million dollars in 2010. Net earnings increased to 16.6 million dollars in the third quarter of 2011 or $0.77 per share compared to 13.2 million dollars or $0.67 per share last year.
(Unless otherwise indicated, all the amounts in this press release are expressed in US dollars.)
| (In millions, except earnings per share) | 3rdQUARTER | NINE-MONTH PERIOD | ||
| 2011 | 2010 | 2011 | 2010 | |
| Sales | 472.5 | 335.3 | 1,343.9 | 980.0 |
| Adjusted EBITDA | 30.8 | 25.6 | 87.2 | 65.3 |
| EBITDA | 29.9 | 23.5 | 83.9 | 60.9 |
| Adjusted earnings | 17.2 | 14.5 | 47.7 | 37.7 |
| Net earnings | 16.6 | 13.2 | 44.8 | 34.9 |
| Adjusted earnings per share | 0.79 | 0.73 | 2.20 | 1.91 |
| Net earnings per share | 0.77 | 0.67 | 2.07 | 1.77 |
The increase in total sales stems primarily from the addition of FinishMaster's operations combined with an organic growth of 4.1%. Sales from Canadian operations reached 149.6 million dollars, an increase of 19 million dollars compared to the corresponding quarter of 2010. This increase arises from an organic growth of 8.2% during the quarter as well as from the positive effects of the variation of the Canadian dollar vis-à-vis the US dollar. American operations, for their part, recorded an organic growth of 2.4% to reach sales of 322.9 million dollars.
The EBITDA margin was 6.3% in the third quarter of 2011, a decrease over the corresponding quarter of last year. This variation mainly comes from rising energy prices, decreasing product prices and changes in the product mix.
"We are pleased to report significant increase in sales resulting from organic and acquisition growth. FinishMaster contributed significantly to the improvement of our quarterly results and the integration of activities such as the consolidation of certain stores is proceeding as planned. 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.
"Finally, the fourth quarter results will benefit from the implementation in the third quarter of proactive margin improvement, for which we have begun to see the benefits. Moreover, the impact on sales from the operations in Florida acquired from Parts Depot in late October should help results. By the end of 2012, these operations will have been fully integrated within our operations, as well as with those of FinishMaster" added Mr. Roy.
For the nine-month period ended September 30, 2011, sales amounted to 1,344 million dollars, compared to 980 million dollars for the same period of last year. Net earnings rose to 44.8 million dollars or $2.07 per share compared to net earnings of 34.9 million dollars or $1.77 per share for the corresponding period of last year.
For the nine-month period ended September 30, 2011, Canadian operations reached total sales of 415 million dollars compared to 379 million dollars for the same period of last year. If we exclude the impact of the exchange rate, organic growth was over 4.1%.
Total sales from the American operations reached 929 million dollars for the first nine months of 2011 compared to 601 million dollars for the same period of 2010, including an organic growth of 1.5%.
Finally, the Board of Directors of Uni-Select Inc. approved the payment on January 20, 2012 of a quarterly dividend of $0.12 Canadian per common share to shareholders of record at December 30, 2011. This dividend is an eligible dividend for tax purposes.
About Uni-Select
Founded in 1968, Uni-SelectTM is a Canadian leader in the distribution of automotive replacement parts, equipment, tools and accessories. Uni-Select USA, Inc., a subsidiary of 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 news release. For additional information with respect to risks and uncertainties, refer to the Annual Report filed by Uni-Select with the Canadian securities commissions. The forward-looking information contained herein is made as of the date of this press release, and Uni-Select does not undertake to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.
The following terms do not have any standardized meaning according to the International Financial Reporting Standards (IFRS). As a result, they are therefore unlikely to be comparable to similar measures presented by other corporations.
- "EBITDA": This measurement represents operating income before depreciation, amortization, finance costs, acquisition related costs, income taxes, gains on disposal of fixed assets and non-controlling interest. This measurement is a widely accepted financial indicator of a 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 Third 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 November 8, 2011, at 3 pm (EST), Uni-Select will host a conference call for the financial community. To join the conference, dial 1-866-696-5910 followed by 8567461
| Uni-Select Inc. Consolidated Statement of Earnings | ||||||||||
| Three and nine-month periods ended September 30, 2011 and 2010 | ||||||||||
| (In thousands of US dollars, except earnings per share, unaudited) | ||||||||||
| Three-month period | Nine-month period | |||||||||
| Note | 2011 | 2010 | 2011 | 2010 | ||||||
| $ | $ | $ | $ | |||||||
| Sales | 472,491 | 335,317 | 1,343,920 | 979,959 | ||||||
| Earnings before the following items: | 29,904 | 23,542 | 83,907 | 60,938 | ||||||
| Net gain on disposal of property and equipment | – | – | (1,728 | ) | – | |||||
| Acquisition-related costs | 7 | – | – | 2,976 | – | |||||
| Finance costs, net | 5 | 4,009 | 1,939 | 12,724 | 4,636 | |||||
| Depreciation and amortization | 6 | 6,248 | 3,100 | 16,428 | 9,498 | |||||
| Earnings before income taxes | 19,647 | 18,503 | 53,507 | 46,804 | ||||||
| Income taxes | 9 | |||||||||
| Current | (127 | ) | 3,227 | 1,932 | 16,183 | |||||
| Deferred | 3,298 | 2,147 | 7,254 | (4,087 | ) | |||||
| 3,171 | 5,374 | 9,186 | 12,096 | |||||||
| Net earnings | 16,476 | 13,129 | 44,321 | 34,708 | ||||||
| Attributable to shareholders | 16,633 | 13,152 | 44,799 | 34,854 | ||||||
| Attributable to non-controlling interests | (157 | ) | (23 | ) | (478 | ) | (146 | ) | ||
| 16,476 | 13,129 | 44,321 | 34,708 | |||||||
| Earnings per share | 8 | |||||||||
| Basic | 0.77 | 0.67 | 2.07 | 1.77 | ||||||
| Diluted | 0.75 | 0.67 | 2.05 | 1.77 | ||||||
| Weighted average number of shares outstanding | ||||||||||
| (in thousands) | 8 | |||||||||
| Basic | 21,678 | 19,720 | 21,643 | 19,720 | ||||||
| Diluted | 22,925 | 19,728 | 22,863 | 19,729 | ||||||
| Shares outstanding (in thousands) | 21,667 | 19,709 | 21,667 | 19,709 | ||||||
| The Statement of Earnings by nature required by International Financial Reporting Standards ("IFRS") is presented in Note 19. |
| The accompanying notes are an integral part of the Consolidated Financial Statements. |
| Uni-Select Inc. | ||||||||
| Consolidated Statement of Comprehensive Income | ||||||||
| Three and nine-month periods ended September 30, 2011 and 2010 | ||||||||
| (In thousands of US dollars, unaudited) | ||||||||
| Three-month period | Nine-month period | |||||||
| 2011 | 2010 | 2011 | 2010 | |||||
| $ | $ | $ | $ | |||||
| Net earnings | 16,476 | 13,129 | 44,321 | 34,708 | ||||
| Other comprehensive income | ||||||||
| Effective portion of changes in fair value of cash flow hedges (net of incomes taxes of $37 and $196 for the three and nine-month periods ($286 and $958 in 2010)) |
(87 |
) | (773 |
) | (529 |
) | (2,933 |
) |
| Net change in fair value of derivative financial instruments designated as cash flow hedges transferred to earnings (net of income taxes of $254 and $707 for the three and nine-month periods ($259 and $780 in 2010)) |
620 |
700 |
1,860 |
2,180 |
||||
| 533 | (73 | ) | 1,331 | (753 | ) | |||
| Unrealized exchange gains on the translation of financial statements to the presentation currency |
11,193 |
427 |
8,972 |
373 |
||||
| Unrealized exchange gains (losses) on the translation of long-term debt designated as a hedge of net investments in foreign operations |
(16,192 |
) | 5,008 |
(10,139 |
) | 2,753 |
||
| Other comprehensive income | (4,466 | ) | 5,362 | 164 | 2,373 | |||
| Comprehensive income | 12,010 | 18,491 | 44,485 | 37,081 | ||||
| Attributable to shareholders | 12,167 | 18,514 | 44,963 | 37,227 | ||||
| Attributable to non-controlling interests | (157 | ) | (23 | ) | (478 | ) | (146 | ) |
| 12,010 | 18,491 | 44,485 | 37,081 | |||||
| The accompanying notes are an integral part of the Consolidated Financial Statements. |
| Uni-Select Inc. |
| Consolidated Statement of Changes in Equity |
| Nine-month periods ended September 30, 2011 and 2010 |
| (In thousands of US dollars, unaudited) |
Note | Share capital | Cumulative translation account | Accumulated changes in the fair value of derivative financial instruments designated as cash flow hedges | Equity components of convertible debentures and contributed surplus | Retained earnings | Total | Non-controlling interests | 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 | – | – | – | – | 34,854 | 34,854 | (146 | ) | 34,708 | |||||||
| Other comprehensive income for the period | – | 3,126 | (753 | ) | – | – | 2,373 | – | 2,373 | |||||||
| Comprehensive income for the period | – | 3,126 | (753 | ) | – | 34,854 | 37,227 | (146 | ) | 37,081 | ||||||
| Contributions by and distributions to shareholders | ||||||||||||||||
| Share issuance | 57 | – | – | – | – | 57 | – | 57 | ||||||||
| Share redemptions | – | – | – | – | (296 | ) | (296 | ) | – | (296 | ) | |||||
| Dividends | – | – | – | – | (6,681 | ) | (6,681 | ) | – | (6,681 | ) | |||||
| 57 | – | – | – | (6,977 | ) | (6,920 | ) | – | (6,920 | ) | ||||||
| Foreign exchange translation adjustment on non-controlling interests | – | – | – | – | – | – | (196 | ) | (196 | ) | ||||||
| Stock-based compensation expense | – | – | – | 56 | – | 56 | – | 56 | ||||||||
| Balance at September 30, 2010 | 39,103 | 3,126 | (4,268 | ) | 354 | 336,203 | 374,518 | 2,914 | 377,432 | |||||||
| Net earnings (loss) for the period | – | – | – | – | 11,040 | 11,040 | (120 | ) | 10,920 | |||||||
| Other comprehensive income for the period | – | 5,090 | 752 | – | – | 5,842 | – | 5,842 | ||||||||
| Comprehensive income for the period | – | 5,090 | 752 | – | 11,040 | 16,882 | (120 | ) | 16,762 | |||||||
| Contributions by and distributions to shareholders | ||||||||||||||||
| Share redemptions | (4 | ) | – | – | – | (34 | ) | (38 | ) | – | (38 | ) | ||||
| Dividends | – | – | – | – | (2,276 | ) | (2,276 | ) | – | (2,276 | ) | |||||
| (4 | ) | – | – | – | (2,310 | ) | (2,314 | ) | – | (2,314 | ) | |||||
| Changes in ownership interests in subsidiaries that do not result in a loss of control | – | – | – | – | – | – | (488 | ) | (488 | ) | ||||||
| Repurchase of non-controlling interest | – | – | – | – | – | – | 317 | 317 | ||||||||
| Foreign exchange translation adjustment on non-controlling interest Stock-based compensation expense | – | – | – | 21 | – | 21 | – | 21 | ||||||||
| 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 | – | – | – | – | 44,799 | 44,799 | (478 | ) | 44,321 | |||||||
| Other comprehensive income of the period | – | (1,167 | ) | 1,331 | – | – | 164 | – | 164 | |||||||
| Comprehensive income for the period | – | (1,167 | ) | 1,331 | – | 44,799 | 44,963 | (478 | ) | 44,485 | ||||||
| Contributions by and distributions to shareholders | ||||||||||||||||
| Share 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 | – | – | – | 1,687 | – | 1,687 | – | 1,687 | |||||||
| Share redemptions | (117 | ) | – | – | – | (541 | ) | (658 | ) | – | (658 | ) | ||||
| Dividends | – | – | – | – | (7,991 | ) | (7,991 | ) | – | (7,991 | ) | |||||
| 49,863 | – | – | 1,687 | (8,532 | ) | 43,018 | – | 43,018 | ||||||||
| Changes in ownership interests in subsidiaries that do not result in a loss of control | – | – | – | – | – | - | (634 | ) | (634 | ) | ||||||
| Repurchase of non-controlling interests | – | – | – | – | – | - | (40 | ) | (40 | ) | ||||||
| Foreign exchange translation adjustment on non-controlling interests Stock-based compensation expense | – | – | - | 59 | - | 59 | – | 59 | ||||||||
| Balance at September 30, 2011 | 88,962 | 7,049 | (2,185 | ) | 2,121 | 381,200 | 477,147 | 1,471 | 478,618 | |||||||
The accompanying notes are an integral part of the Consolidated Financial Statements.
| Uni-Select Inc. Consolidated Statement of Cash Flows |
||||||||||
| Three and nine-month periods ended September 30, 2011 and 2010 | ||||||||||
| (In thousands of US dollars, unaudited) | ||||||||||
| Three-month period | Nine-month period | |||||||||
| Note | 2011 | 2010 | 2011 | 2010 | ||||||
| $ | $ | $ | $ | |||||||
| OPERATING ACTIVITIES | ||||||||||
| Net earnings | 16,476 | 13,129 | 44,321 | 34,708 | ||||||
| Non-cash items | ||||||||||
| Depreciation and amortization | 6 | 6,248 | 3,100 | 16,428 | 9,498 | |||||
| Income tax expense | 3,171 | 5,374 | 9,186 | 12,096 | ||||||
| Finance costs, net | 5 | 4,009 | 1,939 | 12,724 | 4,636 | |||||
| Net gain on disposal of property and equipment | – | – | (1,728 | ) | – | |||||
| Other non-cash items | 432 | 36 | 381 | 604 | ||||||
| 30,336 | 23,578 | 81,312 | 61,542 | |||||||
| Changes in working capital items | (461 | ) | 11,336 | (29,296 | ) | (15,958 | ) | |||
| Interest paid | (6,168 | ) | (1,577 | ) | (12,316 | ) | (4,517 | ) | ||
| Income taxes recovered (paid) | 799 | (2,947 | ) | (8,959 | ) | (10,085 | ) | |||
| Cash flows from operating activities from continuing operations |
24,506 |
30,390 |
30,741 |
30,982 |
||||||
| Cash flows from operating activities from discontinued operations |
– |
15 |
– |
(1,052 |
) | |||||
| Cash flows from operating activities | 24,506 | 30,405 | 30,741 | 29,930 | ||||||
| INVESTING ACTIVITIES | ||||||||||
| Business acquisitions | 7 | (237 | ) | – | (223,002 | ) | (4,008 | ) | ||
| Repurchase of non-controlling interests | 7 | (203 | ) | – | (432 | ) | – | |||
| Proceeds from business disposals | – | 17 | 157 | 2,185 | ||||||
| Balances of purchase prices | 335 | 89 | 454 | 1,198 | ||||||
| Investments and advances to merchant members | (1,644 | ) | (775 | ) | (8,251 | ) | (1,801 | ) | ||
| Receipts on advances to merchant members | 177 | 1,057 | 1,802 | 2,757 | ||||||
| Acquisitions of property and equipment | (3,363 | ) | (492 | ) | (7,936 | ) | (6,232 | ) | ||
| Disposal of property and equipment | 302 | 375 | 5,984 | 1,100 | ||||||
| Intangible assets | 10 | (6,038 | ) | (13,668 | ) | (21,157 | ) | (28,623 | ) | |
| Cash flows from investing activities | (10,671 | ) | (13,397 | ) | (252,381 | ) | (33,424 | ) | ||
| FINANCING ACTIVITIES | ||||||||||
| Net increase (decrease) in bank indebtedness | 886 | (8,790 | ) | 55 | 460 | |||||
| Increase in long-term debt | 11 | 17,232 | – | 373,744 | 25 | |||||
| Repayment of long-term debt | (29,242 | ) | (11 | ) | (243,216 | ) | (73 | ) | ||
| Merchant members' deposits in the guarantee fund | (37 | ) | 142 | 178 | 379 | |||||
| Issuance of convertible debentures, net of issuance costs | 11 | – | – | 49,741 | – | |||||
| Share issuances, net of issuance costs | 12 | – | – | 49,361 | 89 | |||||
| Share redemptions | (658 | ) | (236 | ) | (658 | ) | (236 | ) | ||
| Dividends paid | (2,604 | ) | (2,221 | ) | (7,680 | ) | (6,681 | ) | ||
| Cash flows from financing activities | (14,423 | ) | (11,116 | ) | 221,525 | (6,037 | ) | |||
| Effect of exchange rate changes on cash | (22 | ) | (334 | ) | (20 | ) | 143 | |||
| Increase (Decrease) in cash | (610 | ) | 5,558 | (135 | ) | (9,388 | ) | |||
| Cash, beginning of period | 854 | 198 | 379 | 15,144 | ||||||
| Cash, end of period | 244 | 5,756 | 244 | 5,756 | ||||||
| The accompanying notes are an integral part of the Consolidated Financial Statements. |
| Uni-Select Inc. | |||||
| Consolidated Statement of Financial Position | |||||
| September 30, 2011, December 31, 2010 and January 1, 2010 | |||||
| (In thousands of US dollars, unaudited) | |||||
| September 30, | December 31, | January 1, | |||
| Note | 2011 | 2010 | 2010 | ||
| $ | $ | $ | |||
| ASSETS | |||||
| Current assets | |||||
| Cash | 244 | 379 | 15,144 | ||
| Trade and other receivables | 223,681 | 157,219 | 143,742 | ||
| Income taxes receivable | 10,429 | 7,020 | 3,687 | ||
| Inventory | 506,292 | 404,336 | 375,255 | ||
| Prepaid expenses | 10,980 | 7,492 | 6,052 | ||
| Assets related to discontinued operations | – | – | 2,863 | ||
| Total current assets | 751,626 | 576,446 | 546,743 | ||
| Investments and advances to merchant members | 20,712 | 16,854 | 16,082 | ||
| Property and equipment | 42,176 | 34,389 | 37,092 | ||
| Intangible assets | 10 | 148,860 | 59,264 | 27,401 | |
| Goodwill | 10 | 181,680 | 94,725 | 89,777 | |
| Deferred tax assets | 18,879 | 20,025 | 16,699 | ||
| TOTAL ASSETS | 1,163,933 | 801,703 | 733,794 | ||
| LIABILITIES | |||||
| Current liabilities | |||||
| Bank indebtedness | 11,119 | 11,455 | 42 | ||
| Trade and other payables | 287,679 | 194,976 | 181,687 | ||
| Dividends payable | 2,516 | 2,294 | 2,195 | ||
| Instalments on long-term debt and on merchant members' | |||||
| deposits in the guarantee fund | 13,749 | 269 | 385 | ||
| Liabilities related to discontinued operations | – | – | 1,532 | ||
| Total current liabilities | 315,063 | 208,994 | 185,841 | ||
| Long-term debt | 11 | 293,853 | 170,610 | 170,373 | |
| Convertible debentures | 11 | 46,299 | – | – | |
| Merchant members' deposits in the guarantee fund | 7,673 | 7,723 | 6,963 | ||
| Derivative financial instruments | 2,993 | 4,816 | 4,951 | ||
| Deferred tax liabilities | 19,434 | 17,830 | 18,255 | ||
| TOTAL LIABILITIES | 685,315 | 409,973 | 386,383 | ||
| EQUITY | |||||
| Share capital | 12 | 88,962 | 39,099 | 39,046 | |
| Contributed surplus | 434 | 375 | 298 | ||
| Equity component of convertible debentures | 11 | 1,687 | – | – | |
| Retained earnings | 381,200 | 344,933 | 308,326 | ||
| Accumulated other comprehensive income | 4,864 | 4,700 | (3,515) | ||
| TOTAL SHAREHOLDERS' EQUITY | 477,147 | 389,107 | 344,155 | ||
| Non-controlling interests | 1,471 | 2,623 | 3,256 | ||
| TOTAL EQUITY | 478,618 | 391,730 | 347,411 | ||
| TOTAL LIABILITIES AND EQUITY | 1,163,933 | 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 Chief Executive Officer
Mr. Denis Mathieu
Vice President and Chief Financial Officer