Uni-Select — Q1 2022 Earnings Presentation
23 slides from Uni-Select's earnings presentation, May 5, 2022
Slide 1: Q1 2022 Conference Call
Q1 2022 (Ended March 31, 2022) Conference Call May 5, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements made in this presentation are forward-looking information within the meaning of Canadian securities laws. All such forward-looking information is made and disclosed in reliance upon the “safe harbour” provisions of applicable Canadian securities laws. Fo
Slide 3: Q1 2022 Highlights
Q1 2022 HIGHLIGHTS 3
Slide 4: Q1-22 Conso – Strong Start to the Year
Q1-22 Conso – Strong Start to the Year Sales (M$) EBITDA(1) & Adj. EBITDA(1)* (M$) Diluted EPS & Diluted Net Adj. EPS(1)* $45,2 $408 $410 $0,43 $370 $30,0 11.0% $17,6 8.1% $0,12 4.3% Q1-20 Q1-21 Q1-22 Q1-20 Q1-21 Q1-22 Q1-20 Q1-21 Q1-22 EBITDA Adj. EBITDA -$0,09 EPS Adj. EPS Organic Growth(1) Adj. E
Slide 5: Q1 2022 Segment Review
Q1 2022 SEGMENT REVIEW 5
Slide 6: One-time Items Impacting EBITDA
One-time Items Impacting EBITDA(1) $12.1M $10.9M Inventory obsolescence $1.2M Special items Management anticipates that the bulk of one-time charges for 2022 have been completed (1) This is a Non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section at the end of this presentati
Slide 7: FM – Ongoing Sequential Improvement
FM – Ongoing Sequential Improvement Sales (M$) EBITDA(1) & Adj. EBITDA(1)* (M$) • Sales up 9.2% stimulated by general recovery in the $171 $175 $168 $173 market and effects of price $158 $19,6 increases $15,9 $15,6 $13,7 11.3% • Organic growth(1) $10,1 continued its sequential improvement 6.4% • Adj
Slide 8: CAG – Building on Solid Fundamentals
CAG – Building on Solid Fundamentals • Sales increased 12.7%: Sales (M$) EBITDA(1) & Adj. EBITDA(1)* (M$) (+) Organic growth(1) $145 $144 • Organic growth(1) was up $136 $130 $17,9 $16,8 $16,8 $17,2 12.2% due to increased $115 demand and price $12,0 13.2% increases 10.5% • Adj. EBITDA(1) margin up +
Slide 9: GSF – Focusing on Network Expansion
GSF – Focusing on Network Expansion • Sales up +10.7%: Sales (M$) EBITDA(1) & Adj. EBITDA(1)* (M$) (+) Organic growth(1) $100 $107 $107 (-) FX impact of $3.0M $97 $96 $11,0 $10,9 • Organic growth(1) was up $10,0 $8,4 14.8% due to increased $7,4 demand and price increases 10.3% 10.2% • Adj. EBITDA ma
Slide 10: Q1 2022 Liquidity & Capital Resources
Q1 2022 LIQUIDITY & CAPITAL RESOURCES 10
Slide 11: Seasonal Increase in Working Capital
Seasonal Increase in Working Capital • Cash flow from operating Cash Flow from Operating Free Cash Flow(1)(2) (M$) activities up year-over Activities (M$) year: (+) Improved profitability $43 $43 $41 $37 (+) Lower interest $28 payments $20 (-) Higher working $8 capital investments ($1) ($6) $2 (inve
Slide 12: Improved Leverage on Higher Total Net Debt
Improved Leverage on Higher Total Net Debt Total Net Debt(1)(2) Total Net Debt (1) to Adj. EBITDA(1)* • Total net debt (1) increased to support: 383 3,7x • Seasonal working 348 327 98 315 309 capital requirements 98 2,8x 98 99 104 2,3x • Investments to grow the 2,1x 2,0x business 285 250 217 210 223
Slide 13: Conclusion
CONCLUSION 13
Slide 14: Concluding Remarks
Concluding Remarks Sales and profitability are still expected to improve in 2022 vs 2021 • Magnitude of improvement will be greater in the first half of the year • Timing of certain rebates • Lap operational improvements implemented in the back half of 2021 Ongoing Headwinds • Ongoing supply chain c
Slide 15: Appendix – Reconciliation of Non-GAAP measures
APPENDIX – Reconciliation of Non-GAAP measures 15
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures The information included in this presentation contains certain financial measures that are inconsistent with GAAP. Non-GAAP financial measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented
Slide 17: Non-GAAP Financial Measures (cont’d)
Non-GAAP Financial Measures (cont’d) Management uses adjusted earnings (loss), basic adjusted net earnings (loss) per common share and diluted adjusted net earnings (loss) per common share to assess net earnings (loss) and net earnings (loss) per common share from core operating activities, containi
Slide 18: Non-GAAP Financial Measures (cont’d)
Non-GAAP Financial Measures (cont’d) This measure corresponds to the sum of the revolving credit facility, term facilities, lease obligations (including the portion due within a year), net of deferred financing costs and cash. (Refer to Note 11 to the Total net debt Condensed Interim Consolidated Fi
Slide 19: Non-GAAP Financial Measures (cont’d)
Non-GAAP Financial Measures (cont’d) Reconciliation of Consolidated Organic Growth First quarters 2022 2021 FinishMaster U.S. 172.8 158.2 Canadian Automotive Group 129.8 115.2 GSF Car Parts U.K. 107.1 96.8 Sales 409.6 370.1 (in %) Sales variance 39.5 10.7 Translation effect of the Canadian dollar an
Slide 20: Non-GAAP Financial Measures (cont’d)
Non-GAAP Financial Measures (cont’d) During the third quarter of 2021, the Corporation updated its definition of adjusted EBITDA and is now excluding stock-based compensation to better reflect the operational performance. Accordingly, the comparative figures were adjusted to reflect this change. Rec
Slide 21: Non-GAAP Financial Measures (cont’d)
Non-GAAP Financial Measures (cont’d) During the third quarter of 2021, the Corporation updated its definition of adjusted earnings and adjusted EPS and is now excluding stock-based compensation to better reflect the core operational performance. Accordingly, the comparative figures were adjusted to
Slide 22: Non-GAAP Financial Measures (cont’d)
Non-GAAP Financial Measures (cont’d) The Free Cash Flow definition was reviewed in Q2-21 and comparative figures were adjusted accordingly. Reconciliation of Free Cash Flow First quarters 2022 2021 Cash flows from operating activities 7.8 (0.5) Advances to merchant members and incentives granted to
Slide 23: Uni-Select
UNI-SELECT. www.uniselect.com 23