Wajax Corporation · TSX:WJX
Wajax — Q1 2023 Earnings Presentation
15 slides from Wajax's earnings presentation, May 2, 2023
Slide 1: Wajax Corporation Financial Results Q1 2023
WAJAX CORPORATION FINANCIAL RESULTS Q1 2023 May 2, 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 121 branches coast-to-coast A broad range of industrial products and services Diverse market and sector experience REVENUE SOURCES Q1 2023 ($ millions) Industrial Parts and Engineered Repair Services (ERS) 46% $10.7 Heavy Equipment 54%
Slide 5: Highlights – First Quarter
HIGHLIGHTS – FIRST QUARTER Significant improvement in key financial metrics and TRIF -18% REVENUE EBIT1 ADJUSTED ADJUSTED YTD TRIF3 EBITDA BASIC EPS1 $516.1 $28.6 1.17 million million $43.0 $0.83 million per share • Ten recordable • Increased ERS • Higher sales incidents sales in western volumes, of
Slide 6: Revenue by Region
REVENUE BY REGION Strong revenue growth in all regions Revenue by Region ($ millions) 14% 22% 15% Note: Totals may not add due to rounding. Together We Get More Done.™ 6 Wajax Financial Results - Q1 2023 (May 2, 2023)
Slide 7: Heavy Equipment and Product Support Revenue
HEAVY EQUIPMENT AND PRODUCT SUPPORT REVENUE Equipment YoY Change (1.2)% 22.0% 30.7% 68.8% 12.8% • Decrease from Q4 2022 due primarily to lower mining revenue in western Canada • Increase from Q1 2022 was due to strong construction and forestry revenue in western Canada, and higher material handling
Slide 8: Industrial Parts & Engineered Repair Services Revenue
INDUSTRIAL PARTS & ENGINEERED REPAIR SERVICES REVENUE Industrial Parts YoY Change 24.1% 17.2% 21.3% 26.9% 18.6% • Increase from Q4 2022 was due mainly to higher sales in western and eastern Canada • Increase from Q1 2022 was due to higher sales in all regions, particularly in eastern Canada ERS YoY
Slide 9: Revenue by Category
REVENUE BY CATEGORY Wajax’s heavy equipment and industrial parts and services categories experienced strong growth in most categories in Q1 2023 YTD* CATEGORY4 Q1 2023 Q1 2022 CHANGE W C E HEAVY EQUIPMENT $ 277.8 $ 250.5 $ 27.3 ↑ ↑ ↑ Construction and Forestry 121.4 104.1 17.3 ↑ - ↑ Mining 41.7 50.0
Slide 10: Backlog and Inventory
Backlog 2 1 BACKLOG1 1. Backlog increased by $62.0 million (13.2%) from Q4 2022 to $530.8 million 2. Backlog decreased by $9.3 million (1.7%) compared to Q1 2022 Inventory 2 1 INVENTORY 1. Total inventory of $584.4 million increased $122.2 million compared to Q4 2022 2. Total inventory increased $17
Slide 11: Cash Flow, Leverage, and Balance Sheet
CASH FLOW, LEVERAGE, AND BALANCE SHEET Cash Flow from Operating Activities Working Capital Efficiency1 Total committed Leverage1 credit facilities 1.74x 1.24x 1.28x 1.10x 1.13x Working capital efficiency has decreased from Q4 2022 due to the higher trailing four quarter average working capital. Inve
Slide 12: 2023 Outlook
2023 OUTLOOK • Solid fundamentals in many markets, particularly mining, energy and construction • Supported by relatively elevated commodity prices and sustained budgeting for capital projects • As in 2022, supply chain volatility, higher interest rates, inflation and a tight labour market will rema
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 months ended March 31, 2023 under the heading “Non-GAAP and Other Financial Measures”, which is available on SEDAR at www.sedar.com, for definitions
Slide 15: wajax.com
wajax.com Together We Get More Done.™