Wajax Corporation · TSX:WJX
Wajax — Q1 2021 Earnings Presentation
23 slides from Wajax's earnings presentation, May 4, 2021
Slide 1: Wajax Financial Results – Q1 2021
Wajax Financial Results – Q1 2021 May 4, 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: 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 4: Environment, Social and Governance (ESG)
\\ Environment, Social and Governance (ESG) In 2020, key ESG areas were identified, Progress Highlights • Deployed comprehensive COVID-19 baselines were established and Wajax response and mental health initiatives released its first Sustainability Report. • Increased training hours by 34% over prior
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: 1. Protecting
Slide 6: Highlights – First Quarter
\\ Highlights – First Quarter • Revenue increase due to higher construction and forestry sales in all regions, offset partially by lower mining sales in western Canada. Industrial parts and Revenue $387.1 ERS sales increased in western Canada due mainly to million the acquisition of Tundra Process S
Slide 7: CEWS
\\ CEWS • During the first quarter, the Corporation qualified for the CEWS and recognized $6.3 million as a reimbursement of compensation expense which was allocated as follows: • Cost of sales: $2.8 million • Selling and administrative expenses: $3.5 million • Approximately $2.5 million of the subs
Slide 8: Revenue by Region
\\ Revenue by Region Q1 20211 • Revenue increased $43.1 million, or 12.5%, to $387.1 million in Q1 2021 versus $344.1 million for the same period in 2020 • Increase was due to higher sales in all regions $81 11% $73 $150 $134 12% $156 $138 14% Q1 2020 Q1 2021 West East Central 1 Totals may not add d
Slide 9: Equipment and Product Support Revenue
\\ Equipment and Product Support Revenue Equipment YoY Change $200 -25.40% -6.20% -3.20% -7.30% 41.83% • Decrease from Q4 2020 was due mainly to lower mining and forestry sales in $150 western Canada and lower power generation sales in eastern Canada $100 • Increase from Q1 2020 was due mainly to st
Slide 10: IP & ERS Revenue
\\ IP & ERS Revenue Industrial Parts $150 YoY Change • Increase from Q4 2020 was due to higher -1.80% -13.20% -7.60% -3.40% 13.48% sales in western Canada due mainly to $100 the acquisition of Tundra and higher sales in eastern Canada • Increase from Q1 2020 was due to higher $50 sales in western Ca
Slide 11: Revenue by Category
\\ Revenue by Category YTD* Category4 Q1 2021 Q1 2020 Change E W C Heavy Equipment $ 233.7 $ 210.0 $ 23.7 ↑ - ↑ Construction & Forestry1 115.1 72.1 43.0 ↑ ↑ ↑ Mining 32.5 43.7 (11.1) ↓ ↓ ↑ Material Handling 37.0 39.4 (2.4) ↑ ↓ ↓ Power Systems2 49.1 54.8 (5.7) ↑ ↓ ↓ Industrial Parts and Services $ 15
Slide 12: Backlog
\\ Backlog1 1• Backlog increased by $94.8 million (52.2%) from Q4 2020 to $276.5 million • Increase due primarily due to higher orders in most categories, most notably the construction and forestry category and the ERS and industrial parts categories with the addition of Tundra’s backlog 2 Backlog i
Slide 13: Inventory
\\ Inventory 1• Inventory (including net consignment) decreased by $2.9 million (-0.7%) from Q4 2020 to $409.1 million5 • Net of consignment, balance sheet inventory increased by $21.2 million (6%) due primarily to the acquisition of Tundra and higher mining equipment inventory, partially offset by
Slide 14: Cash Flow and Leverage
\\ Cash Flow and Leverage Cash Flow from Operating Activities $80 77.2 $70 $60 48.1 $50 43.3 $40 34.8 $30 $20 (20.9) $10 (16.3)7 $0 ($10) (7.4) ($20) Q1 Q2 Q3 Q4 Q1 2020 2021 ($16.3)7 Leverage1 4.00x Total committed credit facilities $450 $400 $350 3.00x $300 3.04x 2.82x $250 Note 1 2.59x 2.28x $200
Slide 15: Balance Sheet
\\ Balance Sheet Adjusted Return On Net Assets (RONA)1 15.0% • RONA increased from Q4 2020 due primarily to higher trailing 12-month adjusted EBIT 10.0% 11.2% 11.4% • RONA increased slightly from Q1 2020 due 10.6% 10.4% 10.1% primarily to higher trailing 12-month adjusted EBIT offset partially by hi
Slide 16: 2021 Outlook
\\ 2021 Outlook • Recognizing that the challenges Wajax faced in 2020 have persisted into 2021, the Corporation nonetheless enters 2021 with confidence expecting that it is positioned to succeed over the long term. In 2021, Wajax remains focused on the same priorities that guided it in 2020: protect
Slide 17: Appendix
Appendix 1 -\\ Together We Get More Done:
Slide 18: 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 months ended March 31, 2021 under the heading “Non-GAAP and Additional GAAP Measures”, which is available on SEDAR at www.sedar.com , for definit
Slide 19: Appendix
Appendix 2 -\\ Together We Get More Done:
Slide 20: 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 21: 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 March 31 December 31 March 31 202
Slide 22: Non-GAAP and Additional GAAP Measures
\\ Non-GAAP1 and Additional GAAP Measures (5) For the twelve months ended March 31, 2021 – Includes the $1.1 million pro-forma occupancy costs that would be incurred in the first quarter of 2021, the $1.3 million pro-forma occupancy costs that would be incurred in the fourth quarter of 2020, the $1.
Slide 23: Wajax.com
b viata \\ Together We Get More Done. Wajax.com