Uni-Select — Q2 2021 Earnings Presentation
26 slides from Uni-Select's earnings presentation, Aug 6, 2021
Slide 1: Q2 2021 Conference Call
Q2 2021 (Ended June 30, 2021) Conference Call August 6, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements made in this presentation are forward-looking statements. These statements include, without limitation, statements relating to the effects and duration of the COVID-19 pandemic, general economic and business conditions, particularly in the context of the
Slide 3: Q2 2021 Highlights
UNI-SELECT. Q2 2021 HIGHLIGHTS
Slide 4: The Path Forward
The Path Forward • Rebuild the leadership team • Align the 3 businesses with our vision • Focus on operational excellence • Identify opportunities for growth 4
Slide 5: Conso - Strong Rebound from Q2-20
Conso - Strong Rebound from Q2-20 Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) EPS & Adj. EPS(1) $456 $35.8 $34.1 $0.25 $416 $0.21 8.2% $303 7.8% $14.8 Q2-19 Q2-20 Q2-21 4.9% ($0.23) Q2-19 Q2-20 Q2-21 Q2-19 Q2-20 Q2-21 EBITDA Adj. EBITDA EPS Adj. EPS Organic Growth(1) Adj. EBITDA%(1) Adj. EPS(1) 28.5%
Slide 6: Q2 2021 Segment Review
UNI-SELECT. Q2 2021 SEGMENT REVIEW
Slide 7: One-time Items Impacting EBITDA
One-time Items Impacting EBITDA • Change of inventory • $10M in severance obsolescence estimate of $21M in FinishMaster 7
Slide 8: FM – Ongoing Sequential Improvement
FM – Ongoing Sequential Improvement Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) • Sales recovery from trough levels in Q2-20 $171 $163 $155 $158 $13.2 • Organic growth(1) $133 continued its sequential $10.1 $7.9 $8.4 7.7% improvement but remains below 2019 levels $4.5 3.3% • Adj. EBITDA margin(1) inc
Slide 9: CAG – Robust & Sustained Results
CAG – Robust & Sustained Results • Sales increased 27.1%: Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) (+) FX $145 (+) Organic growth(1) $137 $19.1 $17.7 $125 • Adj. EBITDA(1) margin $114 $115 $12.9 $13.4 $11.8 12.2% +90bps: (+) Increased sales volume 11.3% (+) Vendor rebates Q2-20 Q3-20 Q4-20 Q1-21 Q
Slide 10: TPA – Sustained Improvements
TPA – Sustained Improvements Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) • Sales var. +82.1%: (+) Organic growth(1) $97 $100 $95 (+) FX $87 $9.9 $8.7 $8.3 $6.7 • Organic growth(1) $55 continues to improve 8.3% sequentially but remains below 2019 levels $0.3 0.6%Q3-20 Q2-20 Q4-20 Q1-21 Q2-21 • Adj. EB
Slide 11: Q2 2021 Liquidity & Capital Resources
Q2 2021 LIQUIDITY & CAPITAL RESOURCES 11
Slide 12: Strong Cash Flow
Strong Cash Flow CFO(1) (M$) Free Cash Flow(2) (M$) • CFO(1) and FCF(2) increased due to $62 $61 improved profitability $48 $46 $43 $41 $33 • Capital discipline $35 • Net release in working capital driven by ($1) ($6) thoughtful procurement Q2-20 Q3-20 Q4-20 Q1-21 Q2-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
Slide 13: Sequential Improvement in Debt & Leverage
Sequential Improvement in Debt & Leverage Total Net Debt(1) Total Net Debt to Adj. EBITDA(1) • Total net debt decreased due to: 444 4.6x 397 4.3x 4.2x • Active cash management 370 383 1.0x 3.8x 94 348 1.1x 1.1x • Improved profitability 97 98 1.0x 2.9x 101 98 3.6x 3.2x 0.8x • Leverage ratio decreased
Slide 14: Amended & Restated Credit Facility
Amended & Restated Credit Facility • Reduced Credit facility to $500M from $565M • $350M secured long-term revolving credit facility Preserves liquidity and • $150M - two secured term facilities flexibility while meaningfully reducing • Reduced borrowing costs cost of borrowing • Improved flexibilit
Slide 15: In Compliance With Covenants
In Compliance With Covenants As at June 30, 2021, Uni-Select is in compliance with all its covenants Selected Credit Agreement Covenants(1) Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Total Net Debt ˂4.25:1.0 ˂4.25:1.0 ˂4.25:1.0 ˂4.25:1.0 ˂4.25:1.0 ˂4.00:1.0 ˂3.75:1.0 ˂3.75:1.0
Slide 16: Conclusion
UNI-SELECT. CONCLUSION 16
Slide 17: Concluding Remarks
Concluding Remarks • Seeing continuing positive momentum • Encouraged by preliminary opportunities • Expect 2021 to have higher adjusted EBITDA & adjusted EPS over 2020 • Two potential headwinds: • Resurgence of COVID-19 in the fall • Worsening of supply chain issues 17
Slide 18: Appendix
UNI-SELECT. APPENDIX 18
Slide 19: Non-IFRS Financial Measures
Non-IFRS Financial Measures The information included in this presentation contains certain financial measures that are inconsistent with IFRS. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented
Slide 20: Non-IFRS Financial Measures (cont'd)
Non-IFRS Financial Measures (cont’d) Management uses adjusted earnings and adjusted earnings per share to assess net earnings and net earnings per share from operating activities, containing certain adjustments, net of income taxes, which may affect the comparability of the Corporation’s financial r
Slide 21: Non-IFRS Financial Measures (cont'd)
Non-IFRS Financial Measures (cont’d) This measure consists of long-term debt, including the portion due within a year (as shown in note 12 to the Total net debt interim condensed consolidated financial statements), net of cash. Total net debt to This ratio corresponds to total net debt divided by ad
Slide 22: Reconciliation of Consolidated Organic Growth
Non-IFRS Financial Measures (cont’d) Reconciliation of Consolidated Organic Growth Second quarters YTD 2021 2020 2021 2020 FinishMaster U.S. 171.3 133.4 329.5 335.6 Canadian Automotive Group 145.3 114.3 260.4 223.2 The Parts Alliance U.K. 99.9 54.9 196.6 151.4 Sales 416.4 302.5 786.5 710.2 (in %) (i
Slide 23: Reconciliation of EBITDA and Adjusted EBITDA
Non-IFRS Financial Measures (cont’d) Reconciliation of EBITDA and Adjusted EBITDA Second quarters YTD 2021 2020 % 2021 2020 % Net loss (20.3) (24.2) (20.0) (30.9) Income tax recovery (3.4) (6.8) (3.2) (8.7) Finance costs, net 8.9 12.4 17.8 19.5 Depreciation and amortization 15.3 15.9 30.7 32.5 EBITD
Slide 24: Reconciliation of Adjusted Earnings and Adjusted EPS
Non-IFRS Financial Measures (cont’d) Reconciliation of Adjusted Earnings and Adjusted EPS Second quarters YTD 2021 2020 % 2021 2020 % Net loss (20.3) (24.2) 16.2 (20.0) (30.9) 35.2 Change in estimates related to inventory obsolescence, net of taxes 16.3 - 16.3 - Special items, net of taxes 9.8 13.4
Slide 25: Reconciliation of Free Cash Flows
Non-IFRS Financial Measures (cont’d) Note: the Free Cash Flow definition was reviewed in Q2-21 and comparative figures were adjusted accordingly Reconciliation of Free Cash Flows Second quarters YTD 2021 2020 2021 2020 Cash flows used in operating activities 43.3 34.9 42.7 22.2 Advances to merchant
Slide 26: Uni-Select
UNI-SELECT. UNISELECT.COM