Slide 1: Wajax Corporation Financial Results Q3 2023
WAJAX CORPORATION FINANCIAL RESULTS Q3 2023 November 7, 2023 1 Together We Get More Done.™
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 or
Slide 3: Non-GAAP and Other Financial Measures
NON-GAAP AND OTHER FINANCIAL MEASURES This presentation contains certain non-GAAP and other financial measures that do not have a standardized meaning prescribed by generally accepted accounting principles ("GAAP"). Therefore, these financial measures may not be comparable to similar measures presen
Slide 4: Wajax At-A-Glance
WAJAX AT-A-GLANCE NATIONAL FOOTPRINT 165-year operating history 124 branches coast-to-coast A broad range of industrial products and services Diverse market and sector experience REVENUE SOURCES Q3 2023 ($ millions) Industrial Parts and Engineered Repair Services (ERS) 47% $509.7M IN REVENUE IN Q3 2
Slide 5: Highlights – Third Quarter
HIGHLIGHTS – THIRD QUARTER Strong performance across key financial metrics REVENUE EBIT1 ADJUSTED ADJUSTED YTD TRIF3 EBITDA BASIC EPS1 $509.7 $39.0 1.04 million million $50.0 $0.96 million per share • Eight recordable • Increased • Higher sales incidents occurred industrial parts volumes and • Adjus
Slide 6: Revenue by Region
REVENUE BY REGION Strong revenue growth in all regions Q3 2023 ($ millions) YTD 2023 ($ millions) 22% 30% 11% 5% 13% 4% Note: Totals may not add due to rounding. Together We Get More Done.™ 6 Wajax Financial Results - Q3 2023 (November 7, 2023)
Slide 7: Heavy Equipment and Product Support Revenue
HEAVY EQUIPMENT AND PRODUCT SUPPORT REVENUE Equipment YoY Change 30.7% 68.8% 12.8% 10.6% (8.0)% • Decrease from Q2 2023 due primarily to lower construction and forestry revenue in western and eastern Canada and lower mining revenue in western Canada • Decrease from Q3 2022 was due primarily to lower
Slide 8: Industrial Parts & Engineered Repair Services Revenue
INDUSTRIAL PARTS & ENGINEERED REPAIR SERVICES REVENUE Industrial Parts YoY Change 21.3% 26.9% 18.6% 15.7% 19.4% • Increase from Q2 2023 was due primarily to higher sales in western Canada offset partially by lower sales in eastern Canada • Increase from Q3 2022 was due to higher sales in all regions
Slide 9: Revenue by Category
REVENUE BY CATEGORY Wajax’s industrial parts and services business experienced strong growth in Q3 2023 YTD* CATEGORY4 Q3 2023 Q3 2022 CHANGE YTD 2023 YTD 2022 CHANGE W C E HEAVY EQUIPMENT $ 272.1 $ 266.0 $ 6.1 $ 892.2 $ 820.8 $ 71.5 ↑ ↑ ↑ Construction and Forestry 109.2 119.7 -10.5 396.5 383.7 12.8
Slide 10: Backlog and Inventory
Backlog 2 1 BACKLOG1 1. Backlog increased by $48.0 million (8.7%) from Q2 2023 to a record $599.2 million 2. Backlog increased by $40.5 million (7.2%) compared to Q3 2022 Inventory 2 1 INVENTORY 1. Total inventory of $659.0 million increased $33.9 million compared to Q2 2023 2. Total inventory incre
Slide 11: Cash Flow, Leverage, and Balance Sheet
CASH FLOW, LEVERAGE, AND BALANCE SHEET Cash Flow from Operating Activities Working Capital Efficiency1 Leverage1 Total committed credit facilities 2.16x 1.74x 1.76x 1.28x 1.13x Working capital efficiency has decreased from Q2 2023 due to the higher trailing four quarter average working capital. Inve
Slide 12: Q4 2023 Outlook
Q4 2023 OUTLOOK • Solid fundamentals in many of the markets Wajax serves – particularly mining, energy and construction, supported by relatively elevated key commodity prices and sustained customer budgeting for capital projects • In addition to expected heavy equipment growth, further strong demand
Slide 13: Appendix
APPENDIX 1 Together We Get More Done.™
Slide 14: 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, 2023 under the heading “Non-GAAP and Other Financial Measures”, which is available on SEDAR+ at www.sedarplus.ca
Slide 15: wajax.com Together We Get More Done
w a ja x.co m Together We Get More Done.™