Slide 1: Wajax Financial Results – Q3 2022
Wajax Financial Results – Q3 2022 November 8, 2022
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: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding \\ Forward-Looking Information The foregoing list of factors is not exhaustive. Further information concerning the risks and uncertainties associated with these forward-looking statements and the Corporation’s business may be found in our Annual Information Form for th
Slide 4: 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 5: Highlights – Third Quarter
\\ Highlights – Third Quarter • Revenue increased 17.3% due to higher construction and Revenue $470.8 forestry equipment sales in western and eastern Canada, 17% million higher mining sales in western Canada and higher industrial parts and ERS sales in all regions EBIT1 $26.7 • EBIT increased 8.0% d
Slide 6: Revenue by Region
\\ Revenue by Region Q3 2022 YTD 2022 • Revenue increased $69.5 million, or 17.3%, to • For the nine months ended September 30, 2022, $470.8 million in Q3 2022 versus $401.3 million for revenue increased $187.0 million, or 15.1%, to the same period in 2021 $1,421.5 million versus $1,234.5 million in
Slide 7: Equipment and Product Support Revenue
\\ Equipment and Product Support Revenue Equipment YoY Change (1.4)% (17.5)% (1.2)% 22.0% 30.7% • Decrease from Q2 2022 was due mainly to lower construction and material handling sales in all regions offset partially by higher mining and forestry sales in western Canada • Increase from Q3 2021 due m
Slide 8: IP & ERS Revenue
\\ IP & ERS Revenue Industrial Parts YoY Change 32.6% 27.0% 24.1% 17.2% 21.3% • Industrial parts revenue in Q3 2022 increased slightly from Q2 2022 • Increase from Q3 2021 was due mainly to organic strength in bearings sales in all regions, but particularly in eastern Canada 2021 2022 ERS YoY Change
Slide 9: Revenue by Category
\\ Revenue by Category YTD* Category4 Q3 2022 Q3 2021 Change YTD 2022 YTD 2021 Change W C E Heavy Equipment $ 266.0 $ 228.1 $ 37.8 $ 820.8 $ 725.3 $ 95.5 ↑ ↓ ↑ Construction & Forestry 119.7 90.7 29.0 383.7 327.6 56.1 ↑ ↓ ↑ Mining 51.4 40.0 11.4 140.1 126.4 13.7 ↑ ↓ ↑ Material Handling 38.5 38.1 0.4
Slide 10: Backlog
\\ Backlog 1 1 Backlog at Q3 2022 was a record $558.8 million and increased $23.9 million (4.5%) compared to backlog of $534.8 million at Q2 2022 ◦ Increase due to higher mining, material handling and ERS orders 2 Backlog increased by $187.2 million (50.4%) compared to Q3 2021 ◦ Increase due to incr
Slide 11: Inventory
\\ Inventory 1• Total inventory increased $32.7 million compared to Q2 2022 ◦ Inventory of $446.7 million at Q3 2022 increased $32.7 million from Q2 2022 due primarily from the receipt of a large mining shovel in the quarter and increased overall parts purchasing due to strong sales, increased order
Slide 12: Cash Flow and Leverage
\\ Cash Flow and Leverage Cash Flow from Operating Activities 2021 2022 Leverage1 Total committed credit facilities Significant reduction in leverage ratios year-over-year 1.73x 1.29x 1.24x 1.28x 1.10x 2021 2022 Wajax Financial Results – Q3 2022 (November 8, 2022) 12
Slide 13: Balance Sheet
\\ Balance Sheet Adjusted Return On Net Assets (RONA)1 • RONA decreased from Q2 2022 due to lower trailing 12-month adjusted EBIT and higher trailing 12-month average net assets(1) • RONA increased from Q3 2021 due to higher trailing 12-month adjusted EBIT and lower trailing 12-month average net ass
Slide 14: 2022 Outlook
\\ 2022 Outlook • Wajax has delivered excellent operational results through the first three quarters of 2022, with revenues of $1,421.5 million, gross profit margin of 20.6% and adjusted EBITDA of $123.6 million year to date.(1) The business continues to perform strongly, with robust heavy equipment
Slide 15: 2022 Outlook
\\ 2022 Outlook • The Corporation’s robust balance sheet and record quarter-end backlog of $558.8 million, approximately two-thirds of which is expected to be converted in 2022, continue to show momentum in the business.(1) To maintain this momentum and increase shareholder value, Wajax plans to mai
Slide 16: Appendix 1
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 nine months ended September 30, 2022 under the heading “Non-GAAP and Additional GAAP Measures”, which is available on SEDAR at www.sedar.com,
Slide 18: Appendix 2
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 September 30 June 30 September 30
Slide 21: Wajax.com
b viata \\ Together We Get More Done. Wajax.com