Uni-Select — Q4 2019 Earnings Presentation
25 slides from Uni-Select's earnings presentation, Feb 19, 2020
Slide 1: Q4 2019 Conference Call
Q4 2019 (Ended December 31, 2019) Conference Call February 19, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements made in this presentation are forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to Uni-Select’s outlook (including, without limitation, adjusted EBITDA, adjusted EBITDA margin, adjusted EBT,
Slide 3: Adoption of IFRS 16 - Leases
Adoption of IFRS 16 - Leases On January 1, 2019, the Corporation applied, for the first time, IFRS 16 - Leases using the modified retrospective transition approach and did not restate comparative amounts of the year prior to its adoption as permitted. As a result, the 2019 consolidated financial sta
Slide 4: Q4 2019 Highlights
UNI-SELECT. THE POWER OF TEAMWORK * Q4 2019 Highlights
Slide 5: Consolidated Results – Q4 2019 Highlights
Consolidated Results – Q4 2019 Highlights HIGHLIGHTS Financial Results Q4-18 Q4-19 VAR Concluded strategic review process with a C$125M convertible debenture financing; Total Net Debt of Sales 419.5 412.6 (1.6%) $449M and Funded Debt to Adj. EBITDA(1) of 3.46x Organic growth(1) (1.1%) In Q4-19,
Slide 6: Performance Improvement Plan (“PIP”) - Update
Performance Improvement Plan (“PIP”) - Update As at December 31, 2019, Uni-Select surpassed the expected savings from the PIP Expected Realized .0 By the end As at During As at of 2020 Dec. 2018 2019 Dec. 2019 Annualized cost savings (M$) $50.0 $18.7 $31.9 $50.6 Restructuring charges(1) $11.0 $5.1 $
Slide 7: FinishMaster US – Q4 2019 Highlights
FinishMaster US – Q4 2019 Highlights Financial Results Q4-18 Q4-19 VAR HIGHLIGHTS Sales 203.4 198.3 (2.5%) Organic growth(1) (1.2%) Adjusted EBT margin(2) was up year-over-year for the first time in 2019. It increased 50 bps to EBT 6.8 7.4 4.7%, driven by realized savings in relation to EBT%(1) 3.
Slide 8: Canadian Automotive Group – Q4 2019 Highlights
Canadian Automotive Group – Q4 2019 Highlights Financial Results Q4-18 Q4-19 VAR HIGHLIGHTS Sales 122.5 122.3 (0.1%) Sales were stable year-over-year as the Organic growth(1) (1.4%) contribution from acquisitions offset negative EBT 3.1 (0.0) organic growth EBT%(1) 2.5% 0.0% Q4-19 negative organ
Slide 9: The Parts Alliance UK – Q4 2019 Highlights
The Parts Alliance UK – Q4 2019 Highlights Financial Results HIGHLIGHTS Q4-18 Q4-19 VAR Sales 93.6 92.0 (1.7%) In constant currency, sales decreased 1.3% due to the erosion of sales from the integration of Organic growth(1) (0.5%) company-owned stores of 0.8% and negative EBT (0.1) 0.2 organic gro
Slide 10: Q4 2019 Financial Review
UNI-SELECT. THE POWER OF TEAMWORK " Q4 2019 Financial Review
Slide 11: Sales
Sales Q4 Sales by Business Segment Annual Sales by Business Segment 419.5 412.6 1,752.0 1,739.6 (1.6%) (0.7%) 93,6 92,0 418,2 392,7 122,5 122,3 503,8 516,1 203,4 198,3 830,0 830,8 Q4-18 Q4-19 2018 2019 FinishMaster US Canadian Automotive Group (1) The Parts Alliance UK FinishMaster US Canadian Autom
Slide 12: EBT and Adjusted EBT
EBT and Adjusted EBT(1) Q4 EBT by Business Segment Q4 Adj. EBT(1) by Business Segment (2.9) (51.5) 0,2 7.1 3,1 1,2 5.4 0,3 6,8 -0,1 7,4 -12,7 -59,1 0,0 6,5 3,6 Q4-18 Q4-19 8,5 9,3 (0.7%) (12.5%) 1.7% 1.3% Q4-19 EBT impacted by an impairment loss -9,0 -7,8 on goodwill totalling Q4-18 Q4-19 $45.0M in
Slide 13: Earnings and EPS
Earnings(1) and EPS(1) Earnings(1) EPS(1) 5,4 4,6 0,13 0,11 Q4 Net earnings Q4 Adj. earnings Q4 EPS Q4 Adj. EPS -2,4 -0,06 Q4-19 net earnings and EPS impacted by an impairment loss on goodwill totalling $45.0M in TPA -1,17 -49,4 Q4-18 Q4-19 Q4-18 Q4-19 Q4-19 Adj. earnings(1) decreased by $0.9M mainl
Slide 14: Cash Flow & FCF
Cash Flow & FCF(1) Cash Flow from Operations Free Cash Flow(1) 94,6 Impacted by a A lower level 105,7 one-time $55M cash outflow due to of corporate changes in payment tax instalments and investments 79,9 terms from one large supplier in capital expenditures 33,3 24,1 13,4 3,5 7,8 Q4 Year Q4 Year 20
Slide 15: Financial Position
Financial Position Total Net Debt(1) Funded Debt to Adj. EBITDA(1) Lease obligations 627 The convertible 4,47x are included in debt since 118 debenture is 3,98x 4,09x 534 530 considered quasi Q1-19 equity thus not 3,50x 3.46x 107 included in total 104 449 419 net debt 101 509 419 427 426 348 Q4-18 Q
Slide 16: Appendix
UNI-SELECT. THE POWER OF TEAMWORK ' APPENDIX
Slide 17: 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 18: Non-IFRS Financial Measures (cont’d)
Non-IFRS Financial Measures (cont’d) Management uses adjusted EBT, adjusted earnings and adjusted earnings per share to assess EBT, net earnings and net earnings per share from operating activities, excluding certain adjustments, net of income taxes for adjusted earnings and adjusted earnings per sh
Slide 19: Non-IFRS Financial Measures (cont’d)
Non-IFRS Financial Measures (cont’d) This measure consists of long‐term debt (excluding the convertible bonds which are considered equity for ratio purposes), including the portion due within a year (as shown in note 17 to the consolidated Total net debt financial statements), net of cash. Starting
Slide 20: Reconciliation of Consolidated Organic Growth
Non-IFRS Financial Measures (cont’d) Reconciliation of consolidated Organic growth Fourth quarters Twelve-month periods 2019 2018 2019 2018 FinishMaster US 198.3 203.4 830.8 830.0 Canadian Automotive Group 122.3 122.5 516.1 503.8 The Parts Alliance UK 92.0 93.6 392.7 418.2 Sales 412.6 419.5 1,739.6
Slide 21: Reconciliation of EBITDA
Non-IFRS Financial Measures (cont’d) Reconciliation of EBITDA Fourth quarters Twelve-month periods 2019 2018 % 2019 2018 % Net earnings (loss) (49.4) (2.4) (19.8) 36.5 Income tax expense (2.1) (0.5) 2.5 8.2 Depreciation and amortization 16.0 10.3 64.2 39.7 Finance costs, net 7.5 5.4 29.7 20.6 EBITDA
Slide 22: Reconciliation of EBT and Adjusted EBT
Non-IFRS Financial Measures (cont’d) Reconciliation of EBT and Adjusted EBT Fourth quarters Twelve-month periods 2019 2018 % 2019 2018 % Net earnings (loss) (49.4) (2.4) (19.8) 36.5 Income tax expense (2.1) (0.5) 2.5 8.2 EBT (51.5) (2.9) (1,706.8) (17.4) 44.7 (138.9) EBT margin (12.5%) (0.7%) (1.0%)
Slide 23: Reconciliation of Adjusted Earnings and Adjusted EPS
Non-IFRS Financial Measures (cont’d) Reconciliation of Adjusted Earnings and Adjusted EPS Fourth quarters Twelve-month periods 2019 2018 % 2019 2018 % Net earnings (loss) (49.4) (2.4) (1,992.6) (19.8) 36.5 (154.4) Special items, net of taxes 53.1 6.7 46.8 10.8 Amortization of intangible assets relat
Slide 24: Reconciliation of Free Cash Flows
Non-IFRS Financial Measures (cont’d) Reconciliation of Free cash flows Fourth quarters Twelve-month periods 2019 2018 2019 2018 Cash flows from operating activities 3.5 13.4 33.3 94.6 Changes in working capital 26.1 3.0 94.0 5.2 29.6 16.4 127.3 99.7 Acquisitions of property and equipment (5.4) (8.7)
Slide 25: UNI-SELECT. UNISELECT.COM
UNI-SELECT. UNISELECT.COM 25