Slide 1: Wajax Financial Results – Q3 2021
Wajax Financial Results – Q3 2021 November 2, 2021
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 levels of customer confidence and spending; market acceptance of the products we offer; termination of distribution or original equipment manufacturer agreements; unanticipated operational difficulties (including failure of plant, equipme
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: Update Regarding COVID-19 Pandemic Response
Update Regarding COVID-19 Pandemic \\ Response • The coronavirus pandemic and the measures implemented to stop the spread of COVID-19 have continued to have a significant effect on Wajax • The Corporation’s focus is to manage the business according to the following four key objectives: a. Protecting
Slide 6: Highlights – Third Quarter
\\ Highlights – Third Quarter • Revenue increase due to higher industrial parts and ERS sales in all regions, with increases in western Canada due mainly to the acquisition of Tundra Process Revenue $401.3 Solutions Ltd. (“Tundra”) 18% million • Product support revenue increase due primarily to high
Slide 7: CEWS
\\ CEWS • During the third quarter, the Corporation did not recognize any reimbursement of compensation expense from the CEWS program • During the same quarter last year, the Corporation qualified for the CEWS program and recognized $5.4 million as a reimbursement of compensation expense which was a
Slide 8: Revenue by Region
\\ Revenue by Region Q3 20211 YTD 20211 • Revenue increased $60.7 million, or 17.8%, to • For the nine months ended September 30, 2021, $401.3 million in Q3 2021 versus $340.6 million for revenue increased 18.5%, or $192.9 million, to the same period in 2020 $1,234.5 million versus $1,041.6 million
Slide 9: Equipment and Product Support Revenue
\\ Equipment and Product Support Revenue Equipment YoY Change -3.20% -7.30% 41.83% 3.30% -1.38% • Decrease from Q2 2021 was due mainly to lower construction sales in all regions and lower mining sales in western Canada • Decrease from Q3 2020 was due mainly to lower construction, forestry and crane
Slide 10: IP & ERS Revenue
\\ IP & ERS Revenue Industrial Parts YoY Change -7.60% -3.40% 13.48% 40.10% 32.58% • Decrease from Q2 2021 was due to lower sales in eastern Canada partially offset by higher sales in central Canada • Increase from Q3 2020 was due primarily to the acquisition of Tundra in western Canada effective Ja
Slide 11: Revenue by Category
\\ Revenue by Category YTD* Category4 Q3 2021 Q3 2020 Change YTD 2021 YTD 2020 Change E W C Heavy Equipment $ 228.1 $ 215.2 $ 13.0 $ 725.3 $ 660.8 $ 64.5 ↑ ↑ ↑ Construction & Forestry1 90.7 94.2 (3.5) 327.6 266.7 60.9 ↑ ↑ ↑ Mining 40.0 34.8 5.2 126.4 131.0 (4.6) ↓ ↑ ↑ Material Handling 38.1 36.1 2.0
Slide 12: Hitachi Transition
\\ Hitachi Transition • On August 19, 2021, Wajax and Hitachi Construction Machinery Loaders America Inc. (“Hitachi”) announced that, effective March 1, 2022, the companies plan to expand their current Canadian direct distribution relationship to include construction excavators, mining equipment and
Slide 13: Backlog
\\ Backlog 1 1 Backlog increased by $54.7 million (17.3%) from Q2 2021 to $371.5 million ◦ Increase due primarily to higher orders in most categories, offset partially by lower ERS orders 2 Backlog increased by $166.4 million (81.2%) compared to Q3 2020 ◦ Increase due primarily to higher orders in t
Slide 14: Inventory
\\ Inventory 1• Inventory (including net consignment) increased by $2.4 million (1%) from Q2 2021 to $398.2 million5 ◦ Net of consignment, balance sheet inventory decreased by $5.1 million (-1%) ◦ Net consignment inventory increased by $7.5 million (39%) and consists primarily of construction excava
Slide 15: Cash Flow and Leverage
\\ Cash Flow and Leverage Cash Flow from Operating Activities 2020 2021 Leverage1 Total committed credit facilities 2.59x Note 1 2.28x 2.04x 1.73x 1.39x 2020 2021 Note 1: Credit facility utilization includes $73.4 million in cash paid as part of the consideration to acquire Tundra offset by a debt r
Slide 16: Balance Sheet
\\ Balance Sheet Adjusted Return On Net Assets (RONA)1 • RONA increased from Q2 2021 and Q3 2020 due primarily to higher trailing 12- month adjusted EBIT(1) Working Capital Efficiency1 • Working capital to sales ratio has decreased from Q2 2021 and Q3 2020 due to the combination of the lower four- q
Slide 17: 2021 Outlook
\\ 2021 Outlook • In 2021, Wajax has been focused on protecting the health, safety and well-being of its team, providing excellent customer service, protecting the Corporation’s financial health and driving its long-term growth strategy • The Corporation expects revenue associated with the acquisiti
Slide 18: Appendix
Appendix 1 -\\ Together We Get More Done:
Slide 19: 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, 2021 under the heading “Non-GAAP and Additional GAAP Measures”, which is available on SEDAR at www.sedar.com,
Slide 20: Appendix
Appendix 2 -\\ Together We Get More Done:
Slide 21: 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 22: 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 23: Non-GAAP and Additional GAAP Measures
\\ Non-GAAP1 and Additional GAAP Measures (5) For the twelve months ended September 30, 2021 – Includes the $1.4 million pro-forma occupancy costs that would be incurred in the third quarter of 2021, the $1.4 million pro-forma occupancy costs that would be incurred in the second quarter of 2021, the
Slide 24: Wajax.com
b viata \\ Together We Get More Done. Wajax.com