Uni-Select Inc.

Uni-Select — Q1 2018 Earnings Presentation

23 slides from Uni-Select's earnings presentation, May 3, 2018

  1. Slide 1: Q1 2018 Conference Call

    Q1 2018 (Ended March 31, 2018) Conference Call May 3, 2018

  2. Slide 2: Preliminary Comments

    Preliminary Comments 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 financial guidance (including, without limitation, adjusted EBITDA margin and organic sales by busin

  3. Slide 3: Consolidated Results – Q1 2018 Highlights

    Consolidated Results – Q1 2018 Highlights HIGHLIGHTS Financial Results Q1‐17 Q1‐18 VAR  Revenues increased 42.0% driven by Revenues 297.2 422.1 42.0% acquisitions (i.e. TPA mainly), organic Organic growth(1) 0.0% growth(1) in CAG and FX conversion effect EBITDA(1) 23.2 27.0 16.5%  Organic growth(1

  4. Slide 4: FinishMaster US – Q1 2018 Highlights

    FinishMaster US – Q1 2018 Highlights HIGHLIGHTS Financial Results  Revenues were flat year‐over‐year with Q1‐17 Q1‐18 VAR acquisitions contributing $7.3 million Revenues 199.7 201.4 0.8% to revenues Organic growth(1) (2.8%) EBITDA(1) 23.3 19.9 (14.8%)  Organic growth(1) of (2.8%) due to market sof

  5. Slide 5: Canadian Automotive Group – Q1 2018 Highlights

    Canadian Automotive Group – Q1 2018 Highlights HIGHLIGHTS Financial Results Q1‐17 Q1‐18 VAR  Revenues increased 13.5% driven by Revenues 97.5 110.7 13.5% organic growth(1), FX conversion effect Organic growth(1) and acquisitions for 5.9% $4.3 million EBITDA(1) 2.9 3.2 7.7% EBITDA %(1) 3.0% 2.9% (10

  6. Slide 6: The Parts Alliance UK – Q1 2018 Highlights

    The Parts Alliance UK – Q1 2018 Highlights Financial Results HIGHLIGHTS Q1‐17 Q1‐18 VAR  Revenues of $110.0 million Revenues ‐ 110.0 Organic growth(1) ‐ 4.0%(2)  Organic growth(1) of 4.0% on a stand‐ EBITDA(1) ‐ 9.6 alone basis EBITDA %(1) ‐ 8.7%  EBITDA margin(1) of 8.7%, including impact of gre

  7. Slide 7: Q1 2018 Financial Review

    FOCUSED ON EXECUTION Q1 2018 Financial Review UNI-SELECT:.

  8. Slide 8: Impact of Seasonality on Uni-Select's Results

    Impact of Seasonality on Uni‐Select’s Results Q1 Q2 Q3 Q4 FM SOFT STRONG STRONGEST SOFT CAG SOFTEST STRONGEST STRONG SOFT TPA STRONGEST STRONG SOFT SOFT p8

  9. Slide 9: Revenues

    Revenues Q1 Total Sales by Business Segment TTM Total Sales by Business Segment +42% 422.1 +28% 1,573.2 110.0 1,230.5 258.7 297.2 97.5 110.7 451.3 498.1 199.7 201.4 779.2 816.4 Q1‐17 Q1‐18 TTM Q1‐17 TTM Q1‐18 (1) FinishMaster US Canadian Automotive Group The Parts Alliance UK FinishMaster US Canadia

  10. Slide 10: EBITDA and Adjusted EBITDA

    EBITDA(1) and Adjusted EBITDA(1) Q1 EBITDA(1) by Business Segment Q1 Adj. EBITDA(1) by Business Segment 27.0 27.6 23.2 23.2 9.6 9.6 2.9 7.8% 2.9 7.8% 6.4% 3.2 6.5% 3.2 23.3 23.3 19.9 19.9 ‐3.1 ‐3.1 ‐5.0 ‐5.6 Q1‐17 Q1‐18 Q1‐17 Q1‐18 EBITDA margin EBITDA margin FinishMaster US Canadian Automotive Grou

  11. Slide 11: Earnings and EPS

    Earnings(1) and EPS(1) Earnings(1) EPS(1) 12.1 0.29 11.0 11.0 10.4 0.26 0.25 0.26 Benefits of TPA and US tax reform Q1 Net Earnings Q1 Adj. Earnings (1) Q1 EPS Q1 Adj. EPS (1) 2017 2018 2017 2018 Q1 Adj. earnings(1) and Adj. EPS(1) increased primarily as a result of the contribution from TPA and the

  12. Slide 12: Cash Flow & FCF

    Cash Flow & FCF(1) Cash Flow from Operations Free Cash Flow(1) 143.5 108.8 Higher 81.3 91.6 inventory, taxes & interest 2.1 21.1 6.7 Q1 CF TTM CF ‐30.3 Q1 FCF (1) TTM FCF (1) 2017 2018 2017 2018 Q1 cash flow from operations and free cash flow(1) were negatively impacted by higher inventory in prepar

  13. Slide 13: Financial Position

    Financial Position Total Net Debt(1) Funded Debt to Adj. EBITDA(1) 468 439 3.82x 3.84x 418 3.56x 3.55x Acquisition Pro‐forma of TPA UK TPA UK 199 189 1.82x 1.69x Q1‐17 Q2‐17 Q3‐17 Q4‐17 Q1‐18 Q1‐17 Q2‐17 Q3‐17 Q4‐17 Q1‐18 At the end of the quarter, approximately $145.0 million available under credit

  14. Slide 14: Guidance

    FOCUSED ON EXECUTION GUIDANCE UNI-SELECT:.

  15. Slide 15: 2018 Guidance Reiterated

    2018 Guidance Reiterated Consolidated Guidance Consolidated organic sales growth(1) 2.25% ‐ 4.0% Consolidated adjusted EBITDA(1) margin 7.2% ‐ 8.2% Consolidated effective tax rate 22.0% ‐ 24.0% Capex $26M ‐ $29M Segment Guidance FinishMaster US – organic sales growth(1) 2.0% ‐ 4.0% FinishMaster US –

  16. Slide 16: Appendix

    FOCUSED ON EXECUTION APPENDIX UNI-SELECT:.

  17. Slide 17: Non-IFRS Financial Measures

    Non‐IFRS Financial Measures The information included in this report 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 by ot

  18. Slide 18: Non-IFRS Financial Measures (cont'd)

    Non‐IFRS Financial Measures (cont’d)  EBITDA margin and The EBITDA margin is a percentage corresponding to the ratio of EBITDA to sales. The adjusted adjusted EBITDA EBITDA margin is a percentage corresponding to the ratio of adjusted EBITDA to sales. margin  Free cash flows This measure correspon

  19. Slide 19: Reconciliation of Consolidated Organic Growth

    Non‐IFRS Financial Measures (cont’d) Reconciliation of Consolidated Organic Growth First quarters 2018 2017 FinishMaster US 201.4 199.7 Canadian Automotive Group 110.7 97.5 The Parts Alliance UK 110.0 ‐ Sales 422.1 297.2 % Sales variance 124.9 42.0 Conversion effect of the Canadian dollar (4.8) (1.6

  20. Slide 20: Reconciliation of EBITDA and Adjusted EBITDA

    Non‐IFRS Financial Measures (cont’d) Reconciliation of EBITDA and Adjusted EBITDA First quarters 2018 2017 % Net earnings 10.4 11.0 Income tax expense 1.7 5.8 Depreciation and amortization 9.9 4.8 Finance costs, net 5.0 1.6 EBITDA 27.0 23.2 16.5 EBITDA margin 6.4% 7.8% Net transaction charges relate

  21. Slide 21: Reconciliation of Adjusted Earnings and Adjusted EPS

    Non‐IFRS Financial Measures (cont’d) Reconciliation of Adjusted Earnings and Adjusted EPS First quarters 2018 2017 % Net earnings 10.4 11.0 (5.5) Net transaction charges related to The Parts Alliance 0.5 ‐ acquisition, net of taxes Amortization of intangible assets related to the 1.2 ‐ acquisition o

  22. Slide 22: Reconciliation of Free Cash Flows

    Non‐IFRS Financial Measures (cont’d) Reconciliation of Free Cash Flows First quarters 2018 2017 Cash flows from (used in) operating activities (30.3) 2.1 Changes in working capital 41.1 20.3 10.8 22.4 Acquisitions of property and equipment (3.9) (1.2) Difference between amounts paid for post‐employm

  23. Slide 23: UNISELECT.COM

    UNISELECT.COM

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