Uni-Select — Q4 2020 Earnings Presentation
29 slides from Uni-Select's earnings presentation, Feb 19, 2021
Slide 1: Q4 2020 Conference Call
Q4 2020 (Ended December 31, 2020) Conference Call February 19, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements made in this presentation are forward-looking statements. These statements include, without limitation, statements relating to the effects and duration of the COVID-19 pandemic, general economic and business conditions, particularly in the context of the
Slide 3: Market Dynamics
UNI-SELECT, MARKET DYNAMICS
Slide 4: Industry Statistics – UNS Sales Correlated to the Market
Industry Statistics – UNS Sales Correlated to the Market Uni-Select sales are highly correlated to each market in which it operates United States Canada United Kingdom % Decrease in CCC’s Claim Count % change in KM driven Car Use (GB) (month over month) relative to 2019 relative to previous year 120
Slide 5: Foreign Exchange – Positive Impact on Q4 Sales
Foreign Exchange – Positive Impact on Q4 Sales The value of the U.S. dollar depreciated in Q4 compared to the Canadian dollar and the British Pound which resulted in higher overall sales for Uni-Select USD/CAD USD/GBP $1.50 Q4-20 £0.90 Q4-20 $1.45 £0.85 $1.40 $1.35 £0.80 $1.30 £0.75 $1.25 £0.70 $1.2
Slide 6: Q4 & 2020 Highlights
UNI-SELECT, Q4 & 2020 HIGHLIGHTS
Slide 7: Stable Q4-20 Results
Stable Q4-20 Results Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) • Sales var. (11.2%): (-) Slower recovery in FM $413 $28 $24 (+) CAG performance $366 $21 • Organic growth(1) improved 6.8% 6.5% sequentially from (31.9%) in Q2-20 Q4-19 Q4-20 • Adj. EBITDA(1) var. (14.4%) but margin similar to last Q4-
Slide 8: FM – In Line With Slower Market Recovery
FM – In Line With Slower Market Recovery Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) • Sales down (22.0%) due to the impact from the market mainly due to $198 $202 COVID-19 $16.4 $163 $155 $133 $12.1 • Organic growth(1) 8.3% $7.9 $8.4 improved sequentially $4.5 from (36.6%) in Q2-20 5.4% Q4-19 Q1-20
Slide 9: CAG – Continued Improvements in Results
CAG – Continued Improvements in Results • Sales returned to 2019 run rate despite COVID-19: Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) (+) Acquisitions $137 (+) FX $122 $125 $109 $114 • Organic growth(1) was flat $19.1 $12.9 $13.4 • Adj. EBITDA(1) var. +44.6%: $9.2 (+) Savings from CIP, 10.7% delive
Slide 10: TPA – Stable Q4-20 Results
TPA – Stable Q4-20 Results Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) • Sales var. (5.8%): (-) Impact from COVID-19 $92 $95 $97 $87 (-) Integration of stores (+) FX $8.7 $55 $6.7 • Organic growth(1) in line $5.2 with Q3 $4.7 7.8% 5.7% $0.3 • Adj. EBITDA(1) var. +29.1%: (+) Savings from CIP, Q4-19 Q1
Slide 11: 2020 – Solid Recovery in the 2nd Half
2020 – Solid Recovery in the 2nd Half Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) • Sales var. (15.4%) due to the pandemic $1,740 $130 • Decline correlated $1,472 with the markets in $89 which we operate $76 7.5% $65 • Autoparts businesses 6.0% recovered more rapidly than refinish business 2019 2020
Slide 12: Q4 2020 Liquidity & Capital Resources
Q4 2020 LIQUIDITY & CAPITAL RESOURCES 12
Slide 13: Reduced Debt Significantly
Reduced Debt Significantly Total Net Debt(1) Total Net Debt to Adj. EBITDA(1) • Reduced total net debt by 468 $79M compared to 2019 449 444 4.6x 397 4.0x 4.3x 4.2x due to: 96 370 1.0x 101 94 3.5x 1.1x 1.1x • Efficient controls over 97 0.8x 101 0.8x working capital elements 3.6x 3.2x • Cost control a
Slide 14: Generated Strong Cash Flow
Generated Strong Cash Flow • Q4 CFO var. +44M: CFO(1) (M$) Free Cash Flow(2) (M$) (+) working capital $33 (-) interest payment on $62 convertible debenture $48 $24 $35 • Q4 FCF(2) var. (8M): $16 (-) interest payment on $13 $10 convertible debenture $4 (-) lower operating results Q4-19 Q1-20 Q2-20 Q3
Slide 15: Managed Capital Investments
Managed Capital Investments As part of our cash conservation plan, we kept our capital deployment to a minimum. In 2020 we invested modestly in Capex and merchant advances and made two tuck-in acquisitions $100 $1 $12 • 2020 capital deployment Dividends reduced by almost 50%: $33 were suspended (-)
Slide 16: Maintained Sufficient Liquidity
Maintained Sufficient Liquidity Available Liquidity (M$) • Total available liquidity including cash net of letter of credits, is $285M as at Q4-20 $235 $202 $216 $254 • Improved available $285 liquidity progressively since Q1 by $82M $373 $340 $349 $311 $280 • Increased liquidity by $50M compared to
Slide 17: In Compliance With Covenants
In Compliance With Covenants As at December 31, 2020, Uni-Select is in compliance with all its covenants Selected Credit Agreement Covenants(1) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Liquidity ˃$35M ˃$35M ˃$35M ˃$35M ˃$35M ˃$35M Minimum EBITDA ˃$0M ˃$0M ˃$20M ˃$25M Total Net Deb
Slide 18: 2021 Outlook
UNI-SELECT, 2021 OUTLOOK 18
Slide 19: 2021 Outlook
2021 Outlook There is significant uncertainty in the market related to the pandemic, the Brexit overhang and the ongoing structural changes in the refinish market in the U.S., therefore, the following Outlook is based on certain assumptions and visibility as of today. Q1-21 Consolidated Sales 2021 -
Slide 20: Historical Impact of Seasonality on UNS Results
Historical Impact of Seasonality on UNS Results While the impact of COVID-19 has temporarily distorted the typical seasonality of UNS’s results, Q1-21 is still expected to be soft The below historical seasonality might be impacted in the future due to market volatility created by COVID-19 Q1 Q2 Q3 Q
Slide 21: Appendix
UNI-SELECT, APPENDIX 21
Slide 22: 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
Slide 23: Non-IFRS Financial Measures (cont'd)
Non-IFRS Financial Measures (cont’d) Adjusted earnings and adjusted earnings per share represent net earnings excluding certain adjustments, net of income taxes, which may affect the comparability of the Corporation’s financial results. Management considers that these measures facilitate the analysi
Slide 24: Non-IFRS Financial Measures (cont'd)
Non-IFRS Financial Measures (cont’d) This measure consists of long-term debt, including the portion due within a year (as shown in note 18 to the Total net debt consolidated financial statements), net of cash. This ratio corresponds to total net debt to adjusted EBITDA. Total net debt to adjusted EB
Slide 25: Reconciliation of Consolidated Organic Growth
Non-IFRS Financial Measures (cont’d) Reconciliation of Consolidated Organic Growth Fourth quarters Twelve-month periods 2020 2019 2020 2019 FinishMaster US 154.7 198.3 653.7 830.8 Canadian Automotive Group 124.9 122.3 485.4 516.1 The Parts Alliance UK 86.7 92.0 332.7 392.7 Sales 366.2 412.6 1,471.8
Slide 26: Reconciliation of EBITDA
Non-IFRS Financial Measures (cont’d) Reconciliation of EBITDA Fourth quarters Twelve-month periods 2020 2019 % 2020 2019 % Net earnings (loss) (5.1) (49.4) (31.5) (19.8) Income tax expense (recovery) 2.6 (2.1) (3.8) 2.5 Depreciation and amortization 14.9 16.0 62.6 64.2 Finance costs, net 9.1 7.5 37.
Slide 27: Reconciliation of Adjusted Earnings and Adjusted EPS
Non-IFRS Financial Measures (cont’d) Reconciliation of Adjusted Earnings and Adjusted EPS Fourth quarters Twelve-month periods 2020 2019 % 2020 2019 % Net loss (5.1) (49.4) 89.7 (31.5) (19.8) (58.9) Special items, net of taxes 3.0 53.1 19.5 46.8 Amortization of intangible assets related to the 0.7 0
Slide 28: Reconciliation of Free Cash Flows
Non-IFRS Financial Measures (cont’d) Reconciliation of Free Cash Flows Fourth quarters Twelve-month periods 2020 2019 2020 2019 Cash flows from operating activities 48.3 3.5 132.6 33.3 Changes in working capital (31.5) 26.1 (54.3) 94.0 Acquisitions of property and equipment (1.5) (5.4) (5.9) (21.6)
Slide 29: Uni-Select
UNI-SELECT. UNISELECT.COM