Wajax Corporation · TSX:WJX
Wajax — Q2 2021 Earnings Presentation
22 slides from Wajax's earnings presentation, Aug 6, 2021
Slide 1: Wajax Financial Results – Q2 2021
Wajax Financial Results – Q2 2021 August 6, 2021
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
Slide 3: Non-GAAP and Additional GAAP Measures
\\ Non-GAAP and Additional GAAP Measures This presentation contains certain non-GAAP and additional GAAP measures that do not have a standardized meaning prescribed by GAAP. Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautio
Slide 4: Update Regarding COVID-19 Pandemic Response
Update Regarding COVID-19 Pandemic \\ Response • The coronavirus pandemic and the measures implemented to stop the spread of COVID-19 have continued to have a significant effect on Wajax • The Corporation’s focus is to manage the business according to the following four key objectives: 1. Protecting
Slide 5: Highlights – Second Quarter
\\ Highlights – Second Quarter • Revenue increase due to higher construction sales in all regions and higher forestry sales in central and eastern Canada. Industrial parts and ERS sales Revenue $446.1 increased in all regions, with increases in western 25% million Canada due mainly to the acquisitio
Slide 6: CEWS
\\ CEWS • During the second quarter, the Corporation qualified for the CEWS and recognized $2.1 million as a reimbursement of compensation expense which was allocated as follows: • Cost of sales: $0.9 million • Selling and administrative expenses: $1.2 million • Approximately $1.5 million of the sub
Slide 7: Revenue by Region
\\ Revenue by Region Q2 20211 YTD 20211 • Revenue increased $89.1 million, or 25.0%, to • For the six months ended June 30, 2021, revenue $446.1 million in Q2 2021 versus $356.9 million for increased 18.9%, or $132.2 million, to $833.2 million the same period in 2020 versus $701.0 million in 2020 •
Slide 8: Equipment and Product Support Revenue
\\ Equipment and Product Support Revenue Equipment $200 YoY Change -6.20% -3.20% -7.30% 41.83% 3.30% • Increase from Q1 2021 was due mainly to higher mining sales in western Canada $150 and higher construction sales in eastern Canada $100 • Increase from Q2 2020 was due mainly to strength in constru
Slide 9: IP & ERS Revenue
\\ IP & ERS Revenue Industrial Parts $150 YoY Change • Increase from Q1 2021 was due to higher -13.20% -7.60% -3.40% 13.48% 40.10% sales in western and eastern Canada $100 • Increase from Q2 2020 was due primarily to the acquisition of Tundra effective January 22, 2021 in western Canada, and $50 org
Slide 10: Revenue by Category
\\ Revenue by Category YTD* Category4 Q2 2021 Q2 2020 Change YTD 2021 YTD 2020 Change E W C Heavy Equipment $ 263.4 $ 235.7 $ 27.7 $ 497.1 $ 445.6 $ 51.5 ↑ ↑ ↑ Construction & Forestry1 121.9 100.4 21.5 236.9 172.5 64.4 ↑ ↑ ↑ Mining 53.8 52.5 1.3 86.4 96.2 (9.8) ↓ - ↑ Material Handling 35.9 38.5 (2.6
Slide 11: Backlog
\\ Backlog1 1• Backlog increased by $40.3 million (14.6%) from Q1 2021 to $316.8 million • Increase due primarily due to higher orders in most categories, partially offset by lower mining orders 2 Backlog increased by $91.6 million (40.7%) compared to Q2 2020 • Increase due primarily to higher order
Slide 12: Inventory
\\ Inventory 1• Inventory (including net consignment) decreased by $13.3 million (-3.3%) from Q1 2021 to $395.8 million5 • Net of consignment, balance sheet inventory decreased by $2.2 million (-1%) • Net consignment inventory decreased $11.1 million (-36%) and consists primarily of construction exc
Slide 13: Cash Flow and Leverage
\\ Cash Flow and Leverage Cash Flow from Operating Activities $80 77.2 $70 $60 48.1 $50 43.3 $40 34.8 36.6 $30 $20 (20.9) $10 (16.3)7 $0 ($10) ($20) Q2 Q3 Q4 Q1 Q2 2020 2021 ($16.3)7 Leverage1 4.00x Total committed credit facilities $450 $400 $350 3.00x $300 2.82x Note 1 $250 2.59x 2.28x $200 2.00x
Slide 14: Balance Sheet
\\ Balance Sheet Adjusted Return On Net Assets (RONA)1 15.0% • RONA increased from Q1 2021 due primarily to higher trailing 12-month adjusted EBIT 12.7% 10.0% 11.4% • RONA increased from Q2 2020 due primarily to 10.6% 10.4% 10.1% higher trailing 12-month adjusted EBIT offset partially by higher trai
Slide 15: 2021 Outlook
\\ 2021 Outlook • Recognizing that the challenges Wajax faced in 2020 have persisted into 2021, the Corporation is proceeding with confidence, expecting that it is positioned to succeed over the long term. In 2021, Wajax has remained focused on the same priorities that guided it in 2020, protecting
Slide 16: Appendix
Appendix 1 -\\ Together We Get More Done:
Slide 17: 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, 2021 under the heading “Non-GAAP and Additional GAAP Measures”, which is available on SEDAR at www.sedar.com, for d
Slide 18: Appendix
Appendix 2 -\\ Together We Get More Done:
Slide 19: Non-GAAP and Additional GAAP Measures
\\ Non-GAAP1 and Additional GAAP Measures Except where noted, all figures are in millions of Canadian dollars, except per share data and ratio calculations. This presentation contains the following non-GAAP and additional GAAP measures that do not have a standardized meaning prescribed by GAAP and a
Slide 20: Non-GAAP and Additional GAAP Measures
\\ Non-GAAP1 and Additional GAAP Measures Reconciliation of the Corporation’s net earnings to EBT, EBIT and Adjusted EBIT and the calculation of the Corporation’s RONA is as follows: For the twelve For the twelve For the twelve months ended months ended months ended June 30 March 31 June 30 2021 202
Slide 21: Non-GAAP and Additional GAAP Measures
\\ Non-GAAP1 and Additional GAAP Measures (5) For the twelve months ended June 30, 2021 – Includes the $1.4 million pro-forma occupancy costs that would be incurred in the second quarter of 2021, the $1.4 million pro-forma occupancy costs that would be incurred in the first quarter of 2021, the $1.3
Slide 22: wajax.com
b viata \\ Together We Get More Done. Wajax.com