Uni-Select Inc.

Uni-Select — Q2 2018 Earnings Presentation

23 slides from Uni-Select's earnings presentation, Aug 10, 2018

  1. Slide 1: Q2 2018 Conference Call

    Q2 2018 (Ended June 30, 2018) Conference Call August 10, 2018

  2. Slide 2: Preliminary Comments

    Preliminary Comments Certain statements made in this presentation are forward‐looking statements. These forward‐looking statements include, but are not limited to, statements relating to Uni‐Select’s financial guidance (including, without limitation, adjusted EBITDA margin and organic sales by busin

  3. Slide 3: Consolidated Results – Q2 2018 Highlights

    Consolidated Results – Q2 2018 Highlights HIGHLIGHTS Financial Results  Revenues increased 35.6% driven by Q2‐17 Q2‐18 VAR acquisitions (primarily TPA) Revenues 340.3 461.6 35.6% Organic growth(1) (0.7%)  Organic growth(1) at (0.7%): TPA at 8.6%(2), CAG at (3.0%) and FM at 0.7% EBITDA(1) 29.5 35.4

  4. Slide 4: FinishMaster US – Q2 2018 Highlights

    FinishMaster US – Q2 2018 Highlights HIGHLIGHTS Financial Results  Revenues increased 0.7%, entirely due Q2‐17 Q2‐18 VAR to organic growth(1) with new customer Revenues 209.5 211.0 0.7% wins Organic growth(1) 0.7% EBITDA(1) 24.0 21.5 (10.5%)  EBITDA margin(1) at 10.2% driven by evolving customer m

  5. Slide 5: Canadian Automotive Group – Q2 2018 Highlights

    Canadian Automotive Group – Q2 2018 Highlights HIGHLIGHTS Financial Results  Revenues increased 6.7%, driven by Q2‐17 Q2‐18 VAR FX, acquisitions and billing days Revenues 130.8 139.6 6.7% Organic growth(1) (3.0%)  Organic growth(1) of (3.0%), as a result of soft market conditions and a strong EBIT

  6. Slide 6: The Parts Alliance UK – Q2 2018 Highlights

    The Parts Alliance UK – Q2 2018 Highlights HIGHLIGHTS Financial Results  Revenues of $111.0 million Q2‐17 Q2‐18 Revenues ‐ 111.0  Organic growth(1) of 8.6% on a stand‐ Organic growth(1) ‐ 8.6%(2) alone basis, of which ~3% was EBITDA(1) ‐ 8.6 generated from greenfields EBITDA %(1) ‐ 7.8%  EBITDA m

  7. Slide 7: Q2 2018 Financial Review

    FOCUSED ON EXECUTION Q2 2018 Financial Review UNI-SELECT:.

  8. Slide 8: Typical Impact of Seasonality on Uni-Select's Results

    Typical Impact of Seasonality on Uni‐Select’s Results Q1 Q2 Q3 Q4 FinishMaster SOFT STRONG STRONGEST SOFT CAG SOFTEST STRONGEST STRONG SOFT TPA STRONGEST STRONG SOFT SOFT p8

  9. Slide 9: Revenues

    Revenues Q2 Total Sales by Business Segment TTM Total Sales by Business Segment +36% 461.6 +36% 1,694.5 111.0 369.8 340.3 1,247.0 139.6 454.9 506.9 130.8 209.5 211.0 792.2 817.8 Q2‐17 Q2‐18 TTM 2017 TTM 2018 (1) FinishMaster US Canadian Automotive Group The Parts Alliance UK FinishMaster US Canadian

  10. Slide 10: EBITDA and Adjusted EBITDA

    EBITDA(1) and Adjusted EBITDA(1) Q2 EBITDA(1) by Business Segment Q2 Adj. EBITDA(1) by Business Segment 35.6 35.4 32.5 29.5 8.6 8.7% 8.6 9.5% 7.7% 11.3 7.7% 10.1 11.3 10.1 24.0 21.5 24.0 21.5 ‐2.9 ‐4.7 ‐5.8 ‐4.8 Q2‐17 Q2‐18 Q2‐17 Q2‐18 EBITDA margin EBITDA margin FinishMaster US Canadian Automotive

  11. Slide 11: Earnings and EPS

    Earnings(1) and EPS(1) Earnings(1) EPS(1) 17.9 18.4 0.44 16.6 0.42 0.39 13.7 0.33 Benefits of TPA and US tax reform (1) Q2 Net Earnings Q2 Adj. Earnings (1) Q2 EPS Q2 Adj. EPS 2017 2018 2017 2018 Q2‐18 Adj. earnings(1) and Adj. EPS(1) increased primarily as a result of the contribution from TPA and

  12. Slide 12: Cash Flow & FCF

    Cash Flow & FCF(1) Cash Flow from Operations Free Cash Flow(1) 127.2 94.1 92.9 Higher 109.5 net income 27.7 38.9 16.1 21.0 Q2 TTM Q2 TTM 2017 2018 2017 2018 Q2‐18 cash flow from operations and free cash flow(1) were positively impacted by higher net income. (1) This information represents a non‐IFRS

  13. Slide 13: Financial Position

    Financial Position Total Net Debt(1) Funded Debt to Adj. EBITDA(1) 469 439 450 418 3.82x 3.84x 3.56x 3.60x 3.53x Acquisition Pro‐forma of TPA UK TPA UK 189 1.69x Q2‐17 Q3‐17 Q4‐17 Q1‐18 Q2‐18 Q2‐17 Q3‐17 Q4‐17 Q1‐18 Q2‐18 At the end of the quarter, approximately $159.0 million was available under th

  14. Slide 14: Guidance

    FOCUSED ON EXECUTION GUIDANCE UNI-SELECT:.

  15. Slide 15: Reiterate 2018 Consolidated Guidance

    Reiterate 2018 Consolidated Guidance Consolidated Guidance Guidance (Updated) (Previous) Consolidated organic sales growth(1) 2.25% ‐ 4.0% 2.25% ‐ 4.0% Consolidated adj. EBITDA(1) margin 7.2% ‐ 8.2% 7.2% ‐ 8.2% Consolidated effective tax rate 22.0% ‐ 24.0% 22.0% ‐ 24.0% Capex $26M ‐ $29M $26M ‐ $29M

  16. Slide 16: Appendix

    FOCUSED ON EXECUTION APPENDIX UNI-SELECT:.

  17. Slide 17: Non-IFRS Financial Measures

    Non‐IFRS Financial Measures The information included in this presentation contains certain financial measures that are inconsistent with IFRS. Non‐IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented

  18. Slide 18: Non-IFRS Financial Measures (cont'd)

    Non‐IFRS Financial Measures (cont’d)  EBITDA margin and The EBITDA margin is a percentage corresponding to the ratio of EBITDA to sales. The adjusted adjusted EBITDA EBITDA margin is a percentage corresponding to the ratio of adjusted EBITDA to sales. margin  Free cash flows This measure correspon

  19. Slide 19: Reconciliation of consolidated Organic growth

    Non‐IFRS Financial Measures (cont’d) Reconciliation of consolidated Organic growth Second quarter YTD 2018 2017 2018 2017 FinishMaster US 211.0 209.5 412.3 409.2 Canadian Automotive Group 139.6 130.8 250.2 228.3 The Parts Alliance UK 111.0 ‐ 221.1 ‐ Sales 461.6 340.3 883.7 637.5 % % Sales variance 1

  20. Slide 20: Reconciliation of EBITDA and Adjusted EBITDA

    Non‐IFRS Financial Measures (cont’d) Reconciliation of EBITDA and Adjusted EBITDA Second quarter YTD 2018 2017 % 2018 2017 % Net earnings 17.9 13.7 28.3 24.7 Income tax expense 3.2 6.3 4.9 12.1 Depreciation and amortization 9.5 6.6 19.4 11.4 Finance costs, net 4.9 2.9 9.9 4.5 EBITDA 35.4 29.5 20.0%

  21. Slide 21: Reconciliation of Adjusted Earnings and Adjusted EPS

    Non‐IFRS Financial Measures (cont’d) Reconciliation of Adjusted Earnings and Adjusted EPS Second quarter YTD 2018 2017 % 2018 2017 % Net earnings 17.9 13.7 30.1% 28.3 24.7 14.3% Net transaction charges related to The Parts Alliance (0.4) 2.1 0.2 2.1 acquisition, net of taxes Premium on foreign curre

  22. Slide 22: Reconciliation of Free cash flows

    Non‐IFRS Financial Measures (cont’d) Reconciliation of Free cash flows Second quarter YTD 2018 2017 2018 2017 Cash flows from (used in) operating activities 38.9 21.0 8.6 23.1 Changes in working capital (8.3) (2.2) 32.8 18.1 30.6 18.8 41.4 41.2 Acquisitions of property and equipment (2.7) (2.6) (6.6

  23. Slide 23: UNISELECT.COM

    UNISELECT.COM

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