Slide 1: Wajax Financial Results - Q4 2022
Wajax Financial Results - Q4 2022 March 7, 2023
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 o
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 cautioned
Slide 4: Highlights – Fourth Quarter
Highlights – Fourth Quarter • Increase due to higher construction and forestry equipment sales 34% Revenue $541.3 in western and eastern Canada, higher mining sales in western million Canada and higher industrial parts and ERS sales in all regions • Increase due to higher sales volumes and equipment
Slide 5: Revenue by Region
Revenue by Region Q4 2022 YTD 2022 ◦ Revenue increased $138.5 million, or 34.4%, to ◦ For the twelve months ended December 31, 2022, $541.3 million in Q4 2022 versus $402.8 million for revenue increased $325.5 million, or 19.9%, to the same period in 2021 $1,962.8 million versus $1,637.3 million in
Slide 6: Equipment and Product Support Revenue
Equipment and Product Support Revenue Equipment YoY Change (17.5)% (1.2)% 22.0% 30.7% 68.8% • Increase from Q3 2022 was due mainly to strong construction revenue in all regions, higher forestry and mining sales in western Canada and higher material handling sales in all regions • Increase from Q4 20
Slide 7: IP & ERS Revenue
IP & ERS Revenue Industrial Parts YoY Change 27.0% 24.1% 17.2% 21.3% 26.9% • Increase from Q3 2022 was due mainly to higher sales in central Canada • Increase from Q4 2021 was due primarily to organic strength in industrial parts sales in all regions, led by increased bearings sales 2021 2022 ERS Yo
Slide 8: Revenue by Category
Revenue by Category YTD* Category4 Q4 2022 Q4 2021 Change YTD 2022 YTD 2021 Change W C E Heavy Equipment $ 330.8 $ 232.2 $ 98.6 $ 1,151.6 $ 957.4 $ 194.2 ↑ ↓ ↑ Construction & Forestry 132.7 108.1 24.6 516.4 435.7 80.7 ↑ ↓ ↑ Mining 86.4 26.8 59.6 226.5 153.2 73.3 ↑ ↓ ↑ Material Handling 51.9 38.7 13.
Slide 9: Backlog
Backlog1 1 Backlog decreased by $90.0 million (-16.1%) from Q3 2022 to $468.8 million • Decrease due primarily to deliveries of multiple mining shovels that were in the prior quarter's backlog, along with most other categories completing more deliveries in the quarter versus new orders added to back
Slide 10: Inventory
Inventory 1◦ Total inventory increased $15.5 million compared to Q3 2022 • Inventory of $462.2 million at Q4 2022 increased $15.5 million from Q3 2022 due largely to higher parts inventory driven by an investment in certain key parts stock levels as a part of our efforts to improve availability of c
Slide 11: Cash Flow and Leverage
Cash Flow and Leverage Cash Flow from Operating Activities 2021 2022 Leverage1 Total committed credit facilities Significant reduction in leverage year-over-year 1.29x 1.24x 1.28x 1.13x 1.10x 2021 2022 11 Wajax Financial Results - Q4 2022 (March 7, 2023)
Slide 12: Balance Sheet
Balance Sheet Adjusted Return On Net Assets (RONA)1 • RONA increased from Q3 2022 due to higher trailing 12-month adjusted EBIT offset partially by higher trailing 12-month average net assets(1) • RONA increased from Q4 2021 due to higher trailing 12-month adjusted EBIT(1) Working Capital Efficiency
Slide 13: Dividend Increase
Dividend Increase • On March 6, 2023, Wajax announced that its Board of Directors approved a 32% increase in the Corporation’s quarterly dividend • The Corporation has declared a dividend of $0.33 per share for the first quarter of 2023, payable on April 4, 2023, to shareholders of record on March 1
Slide 14: 2023 Outlook
2023 Outlook • In 2022 Wajax delivered record revenue of nearly $2.0 billion, up 19.9% over the prior year, and saw adjusted diluted earnings per share grow 34.7% to $3.15. The Corporation generated $69.1 million in cash flow from operations, reflecting investments in inventory and increases in rece
Slide 15: Appendix
Appendix 1 -\\ Together We Get More Done:
Slide 16: 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 twelve months ended December 31, 2022 under the heading “Non-GAAP and Additional GAAP Measures”, which is available on SEDAR at www.sedar.com, f
Slide 17: Appendix
Appendix 2 -\\ Together We Get More Done:
Slide 18: 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 are
Slide 19: 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 December 31 September 30 December 31
Slide 20: wajax.com
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