Slide 1: Wajax Corporation Financial Results Q2 2024
WAJAX CORPORATION FINANCIAL RESULTS Q2 2024 August 9, 2024 1 Together We Get More Done.
Slide 2: Cautionary Statement Regarding Forward-Looking Information
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This presentation contains certain forward-looking statements and forward-looking information, as defined in applicable securities laws (collectively, “forward-looking statements”). These forward-looking statements relate to future events or
Slide 3: Non-GAAP and Other Financial Measures
NON-GAAP AND OTHER FINANCIAL MEASURES This presentation contains certain non-GAAP and other financial measures that do not have a standardized meaning prescribed by generally accepted accounting principles ("GAAP"). Therefore, these financial measures may not be comparable to similar measures presen
Slide 4: Wajax At-A-Glance
WAJAX AT-A-GLANCE NATIONAL FOOTPRINT 166-year operating history 119 branches coast-to-coast A broad range of industrial products and services Diverse market and sector experience REVENUE SOURCES Q2 2024 REVENUE SOURCES YTD 2024 ($ millions) ($ millions) Industrial Parts Industrial Parts and Engineer
Slide 5: Purpose and Values
PURPOSE AND VALUES Empowering People to Build a Better Tomorrow We commit to safety and well-being; We develop potential and expertise; We deliver an exceptional experience together; We build lasting relationships; and We strive to continuously improve. Together We Get More Done. 5 Wajax Financial R
Slide 6: Strategic Priorities
STRATEGIC PRIORITIES Continue to build a "people first" company. Grow our existing business with a focus on parts, service, and margin improvement. Unlock the potential of our enhanced direct relationship with Hitachi. Acquire Industrial Parts and ERS businesses. Improve our cost structure and proce
Slide 7: Highlights – Second Quarter
HIGHLIGHTS – SECOND QUARTER Higher gross profit margins help to offset revenue decline -3.1% -4% -16% -28% REVENUE GROSS ADJUSTED ADJUSTED YTD TRIF3 $568.3 PROFIT EBITDA1 BASIC EPS1 million MARGIN1 $54.7 $1.06 0.81 million per share • Lower construction 20.9% • Nine recordable and forestry • Adjuste
Slide 8: Revenue by Region
REVENUE BY REGION Strong revenue growth in eastern Canada in the second quarter Q2 2024 ($ millions) YTD 2024 ($ millions) (2)% (6)% 0% 8% (11)% (9)% Note: Totals may not add due to rounding. Together We Get More Done. 8 Wajax Financial Results - Q2 2024 (August 9, 2024)
Slide 9: Heavy Equipment and Product Support Revenue
HEAVY EQUIPMENT AND PRODUCT SUPPORT REVENUE Equipment YoY Change 10.6% (8.0)% (21.6)% (25.8)% (5.2)% • Increase from Q1 2024 was due primarily to higher construction and forestry sales in all regions. • Decrease from Q2 2023 was due primarily to lower construction and forestry sales in western Canad
Slide 10: Industrial Parts and ERS Revenue
INDUSTRIAL PARTS AND ERS REVENUE Industrial Parts YoY Change 15.7% 19.4% (1.4)% 1.0% (5.0)% • Decrease from Q1 2024 was due primarily to lower sales in all regions. • Decrease from Q2 2023 was due primarily to lower sales in central and eastern Canada, offset partially by higher sales in western Can
Slide 11: Revenue by Category
REVENUE BY CATEGORY Wajax’s construction and forestry business experienced strong growth in Q2 2024 YTD* CATEGORY4 Q2 2024 Q2 2023 CHANGE FY 2024 FY 2023 CHANGE W C E HEAVY EQUIPMENT $ 336.1 $ 342.4 $ (6.2) $ 579.3 $ 620.1 $ (40.8) ↓ — ↑ Construction and Forestry 174.1 166.0 8.1 266.6 287.3 (20.7) ↓
Slide 12: Backlog and Inventory
Backlog 2 1 BACKLOG1 1. Backlog decreased by $42.2 million (-7.2%) from Q1 2024 to $544.9 million 2. Backlog decreased by $6.4 million (-1.2%) compared to Q2 2023 Inventory 2 1 INVENTORY 1. Total inventory of $724.8 million decreased $22.5 million compared to Q1 2024 2. Total inventory increased $99
Slide 13: Cash Flow, Leverage and Balance Sheet
CASH FLOW, LEVERAGE1 AND BALANCE SHEET Cash Flow from Operating Activities Working Capital Efficiency1 Leverage1 Total committed credit facilities 2.16x 2.16x 2.20x 2.20x 2.17x 2.17x 1.98x 1.98x 1.76x 1.76x Working capital efficiency has decreased from Q1 2024 due to the higher trailing four quarter
Slide 14: Outlook
OUTLOOK • During the quarter management rolled out the Corporation’s new ERP system to a further 57 industrial parts and ERS branch locations, some of which are colocations. With this, the Corporation now has a total of 99 branch locations operating its new ERP system, representing approximately 90%
Slide 15: Appendix
APPENDIX 1 Together We Get More Done.
Slide 16: Endnotes
ENDNOTES 1. This measure does not have a standardized meaning prescribed by GAAP. Please see Wajax’s Management’s Discussion and Analysis for the three and six months ended June 30, 2024 under the heading “Non-GAAP and Other Financial Measures”, which is available on SEDAR+ at www.sedarplus.ca, for
Slide 17: wajax.com
wajax.com Together We Get More Done.