Uni-Select — Q4 2018 Earnings Presentation
31 slides from Uni-Select's earnings presentation, Feb 20, 2019
Slide 1: Q4 2018 Conference Call
Q4 2018 (Ended Dec. 31, 2018) Conference Call February 20, 2019
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 financial guidance (including, without limitation, adjusted EBITDA margin and organic sales by
Slide 3: Introductory Remarks
Introductory Remarks UNI-SELECT.
Slide 4: Overview of 2018 Results
Overview of 2018 Results Revenues for the year were up 21% to $1.8 billion vs $1.4 billion in 2017, primarily due to the TPA acquisition Organic sales growth was 1.5%, with a positive organic growth in all 3 segments Adjusted EBITDA stood at $120 million or 6.8% of sales, compared to $118 mill
Slide 5: Restructuring Plan - Update
Restructuring Plan - Update Launched 20/20 initiative in Q3-17 to generate annual recurring savings of $20.0 million by 2020 In Q3-18 we increased and accelerated the program by an additional $5.0 million in cost savings, bringing the total recurring savings to at least $25 million by 2020 Thi
Slide 6: Performance Improvement and Rightsizing Plan – FinishMaster
Performance Improvement and Rightsizing Plan – FinishMaster In January, the Board of Directors, in collaboration with management, initiated an in-depth review of the US operations with the objective of identifying specific performance improvement and rightsizing action to address the changing mark
Slide 7: Strategic Alternatives Review - Update
Strategic Alternatives Review - Update In September 2018, the Board made management changes and announced the formation of a Special Committee of independent members of the Board of Directors to oversee a review of strategic alternatives and appointed JP Morgan as its advisor. The Board of Direc
Slide 8: Q4 2018 Highlights
Q4 2018 Highlights UNI-SELECT.
Slide 9: Typical Impact of Seasonality on UNS Results
Typical Impact of Seasonality on UNS Results Q1 Q2 Q3 Q4 FinishMaster SOFT STRONG STRONG SOFT CAG SOFT STRONG STRONG SOFT TPA STRONG STRONG SOFT SOFT p9
Slide 10: Consolidated Results – Q4 2018 Highlights
Consolidated Results – Q4 2018 Highlights Financial Results HIGHLIGHTS Q4-17 Q4-18 VAR Revenues 415.0 419.5 1.1% Revenues increased 1.1%, driven by organic growth(1) and business acquisitions, Organic growth(1) 2.3% partially offset by FX EBITDA(1) 25.9 12.8 (50.6%) Organic growth(1) at 2.3%, ma
Slide 11: FinishMaster US – Q4 2018 Highlights
FinishMaster US – Q4 2018 Highlights Financial Results HIGHLIGHTS Q4-17 Q4-18 VAR Revenues increased 2.3%, driven by organic Revenues 199.0 203.4 2.3% growth(1), partially offset by # billing days Organic growth(1) 3.9% Q4-18 organic growth(1) at 3.9%; 2018 EBITDA(1) 19.6 11.7 (40.4%) organic gr
Slide 12: Canadian Automotive Group – Q4 2018 Highlights
Canadian Automotive Group – Q4 2018 Highlights Financial Results HIGHLIGHTS Q4-17 Q4-18 VAR Revenues decreased 0.5%, primarily Revenues 123.0 122.5 (0.5%) explained by FX, the timing of the Holiday season & advanced sales in the preceding Organic growth(1) (0.5%) quarter due to announced price inc
Slide 13: The Parts Alliance UK – Q4 2018 Highlights
The Parts Alliance UK – Q4 2018 Highlights Financial Results Q4-17 Q4-18 VAR HIGHLIGHTS Revenues 93.0 93.6 0.6% Revenues of $93.6M up 0.6%, partially offset Organic growth(1) 2.8% by FX; softer than expected sales in December EBITDA(1) 3.7 2.4 (36.5%) EBITDA%(1) 4.0% 2.5% (150 bps) Organic growt
Slide 14: Q4 2018 Financial Review
Q4 2018 Financial Review UNI-SELECT.
Slide 15: Revenues
Revenues Q4 Total Sales by Business Segment 2018 Total Sales by Business Segment 415.0 419.5 +21% 1,752.0 +1.1% 93.0 93.6 1,448.3 418.2 148.7 123.0 122.5 484.9 503.8 199.0 203.4 814.6 830.0 Q4-17 Q4-18 2017 2018 FinishMaster US Canadian Automotive Group (1) The Parts Alliance UK FinishMaster US Cana
Slide 16: EBITDA and Adjusted EBITDA
EBITDA(1) and Adjusted EBITDA(1) Q4 EBITDA(1) by Business Segment Q4 Adj. EBITDA(1) by Business Segment 25.9 28.0 3.7 3.7 21.4 6.3 12.8 3.6 6.3 6.7% 6.2% 2.4 3.0% 5.1% 9.3 5.9 19.6 19.6 11.7 13.4 -3.7 -1.6 -7.2 -4.8 Q4-17 Q4-18 Q4-17 Q4-18 EBITDA margin EBITDA margin FinishMaster US Canadian Automot
Slide 17: Earnings and EPS
Earnings(1) and EPS(1) Earnings(1) EPS(1) 0.30 0.27 11.6 0.25 0.21 8.7 0.20 0.15 0.13 5.4 0.10 0.05 0.00 (1) (1) Q4 EPS Q4 Adj. EPS Q4 Net Earnings Q4 Adj. Earnings -0.05 -2.4 -0.10 -0.06 2017 2018 2017 2018 Q4-18 Adj. earnings(1) decreased mainly due to a lower adjusted EBITDA, as well as additiona
Slide 18: Cash Flow & FCF
Cash Flow & FCF(1) Cash Flow from Operations Free Cash Flow(1) 124.0 Unfavorable 95.7 changes in 94.6 79.9 working capital items Higher Capex 45.5 16.9 13.7 13.4 Q4 Year Q4 Year 2017 2018 2017 2018 Q4-18 cash flow from operations was mainly impacted by investments in inventory to benefit from annual
Slide 19: Financial Position
Financial Position Total Net Debt(1) Funded Debt to Adj. EBITDA(1) 469 450 3.84x 418 419 3.56x 3.60x 3.50x 394 3.12x On a sequential basis, net debt increased due to higher working capital requirements and acquisitions Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 At the end of the qua
Slide 20: Guidance
GUIDANCE UNI-SELECT.
Slide 21: 2019 Consolidated Guidance
2019 Consolidated Guidance Consolidated Guidance Consolidated organic sales growth(1) 1.25% - 3.25% Consolidated adj. EBITDA(1) margin 5.75% - 6.75% Consolidated effective tax rate 22.0% - 24.0% Capex(2) $25M - $30M (1) This information represents a non-IFRS financial measure. Please refer to the “N
Slide 22: Typical Impact of Seasonality on UNS Cashflow
Typical Impact of Seasonality on UNS Cashflow Cash flow from operating activities (in millions of dollars) Q1 Q2 Q3 Q4 2016 (8) 38 49 55 2017 2 28 49 45 2018 (30) 39 72 13 2019E 2019 will be negatively impacted by a one-time $55M cash outflow due to changes in payment terms from one of our large sup
Slide 23: Conclusion
Conclusion We are not satisfied with our FinishMaster results and we are taking concrete action with the Performance Improvement Plan to generate an additional $10.0 millions of annualized savings The total Performance Improvement Plan is expected to generate $35.0 million of annualized recurren
Slide 24: Appendix
APPENDIX UNI-SELECT.
Slide 25: 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 26: 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
Slide 27: Reconciliation of Consolidated Organic Growth
Non-IFRS Financial Measures (cont’d) Reconciliation of consolidated Organic growth Fourth quarters Twelve-month periods 2018 2017 2018 2017 FinishMaster US 203.4 199.0 830.0 814.6 Canadian Automotive Group 122.5 123.0 503.8 484.9 The Parts Alliance UK 93.6 93.0 418.2 148.7 Sales 419.5 415.0 1,752.0
Slide 28: Reconciliation of EBITDA and Adjusted EBITDA
Non-IFRS Financial Measures (cont’d) Reconciliation of EBITDA and Adjusted EBITDA Fourth quarters Twelve-month periods 2018 2017 % 2018 2017 % Net earnings (loss) (2.4) 8.7 36.5 44.6 Income tax expense (recovery) (0.5) 2.2 8.2 22.0 Depreciation and amortization 10.3 10.0 39.7 29.6 Finance costs, net
Slide 29: 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 2018 2017 % 2018 2017 % Net earnings (loss) (2.4) 8.7 (127.1) 36.5 44.6 (18.2) Special items, net of taxes 6.7 1.8 10.8 6.6 Amortization of the premium on foreign currency -
Slide 30: Reconciliation of Free Cash Flows
Non-IFRS Financial Measures (cont’d) Reconciliation of Free cash flows Fourth quarters Twelve-month periods 2018 2017 2018 2017 Cash flows from operating activities 13.4 45.5 94.6 124.0 Changes in working capital 9.0 (23.2) 5.2 (14.6) 22.4 22.2 99.7 109.4 Acquisitions of property and equipment (8.7)
Slide 31: UNISELECT.COM
UNISELECT.COM