Wajax Corporation · TSX:WJX
Wajax — Q3 2024 Earnings Presentation
17 slides from Wajax's earnings presentation, Nov 5, 2024
Slide 1: Wajax Corporation Financial Results Q3 2024
WAJAX CORPORATION FINANCIAL RESULTS Q3 2024 November 5, 2024 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 166-year operating history 116 branches coast-to-coast A broad range of industrial products and services Diverse market and sector experience REVENUE SOURCES Q3 2024 REVENUE SOURCES YTD 2024 ($ millions) ($ millions) Industrial Parts Industrial Parts and Engineer
Slide 5: Purpose and Values
PURPOSE AND VALUES Empowering People to Build a Better Tomorrow We commit to safety and well-being; We develop potential and expertise; We deliver an exceptional experience together; We build lasting relationships; and We strive to continuously improve. Together We Get More Done. 5 Wajax Financial R
Slide 6: Strategic Priorities
STRATEGIC PRIORITIES Continue to build a "people first" company. Grow our existing business with a focus on parts, service, and margin improvement. Unlock the potential of our enhanced direct relationship with Hitachi. Acquire Industrial Parts and ERS businesses. Improve our cost structure and proce
Slide 7: Highlights – Third Quarter
HIGHLIGHTS – THIRD QUARTER Lower revenues and gross profit margins were offset partially by lower selling and administrative expenses -5.6% -300 bps -25% -54% -13% REVENUE GROSS ADJUSTED ADJUSTED YTD TRIF3 $481.0 PROFIT EBITDA1 BASIC EPS1 million MARGIN1 $37.4 $0.44 0.91 19.2% million per share • Lo
Slide 8: Revenue by Region
REVENUE BY REGION Third quarter growth in equipment sales partially offset declines in product support and industrial parts Q3 2024 ($ millions) YTD 2024 ($ millions) (3)% (4)% (1)% (1)% (10)% (10)% Note: Totals may not add due to rounding. Together We Get More Done. 8 Wajax Financial Results - Q3 2
Slide 9: Heavy Equipment and Product Support Revenue
HEAVY EQUIPMENT AND PRODUCT SUPPORT REVENUE Equipment YoY Change (8.0)% (21.6)% (25.8)% (5.2)% 4.5% • Decrease from Q2 2024 was due primarily to lower construction and forestry sales in all regions. • Increase from Q3 2023 was due primarily to higher construction and forestry equipment sales in west
Slide 10: Industrial Parts and ERS Revenue
INDUSTRIAL PARTS AND ERS REVENUE Industrial Parts YoY Change 19.4% (1.4)% 1.0% (5.0)% (15.3)% • Decrease from Q2 2024 was due primarily to lower sales in all regions. • Decrease from Q3 2024 was due to market conditions that were less favourable than expected. ERS YoY Change 10.0% 42.8% (0.9)% (4.4)
Slide 11: Revenue by Category
REVENUE BY CATEGORY Construction and forestry and material handling revenue increased versus the prior quarter YTD* CATEGORY4 Q3 2024 Q3 2023 CHANGE FY 2024 FY 2023 CHANGE W C E HEAVY EQUIPMENT $ 266.3 $ 272.1 $ (5.8) $ 845.7 $ 892.2 $ (46.6) ↓ — ↑ Construction and Forestry 117.7 109.2 8.5 384.3 396
Slide 12: Backlog and Inventory
Backlog 2 1 BACKLOG1 1. Backlog increased by $43.3 million (7.9%) from Q2 2024 to $588.1 million 2. Backlog decreased by $11.1 million (-1.9%) compared to Q3 2023 Inventory 2 1 INVENTORY 1. Total inventory of $724.1 million decreased $0.8 million compared to Q2 2024 2. Total inventory increased $65.
Slide 13: Cash Flow, Leverage and Balance Sheet
CASH FLOW, LEVERAGE1 AND BALANCE SHEET Cash Flow from Operating Activities Working Capital Efficiency1 Leverage1 Total committed credit facilities 2.78x 2.16x 2.20x 2.17x 1.98x Working capital efficiency has decreased marginally from Q2 2024 due to lower trailing 12-month revenue offset partially by
Slide 14: Outlook
OUTLOOK • Wajax continues to see strong customer demand in the mining and energy sectors, and reduced activity in industrial and forestry • Given softer than expected market conditions and year-to-date results, management has implemented a number of cost-saving initiatives and is actively pursuing f
Slide 15: Appendix
APPENDIX 1 Together We Get More Done.
Slide 16: 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, 2024 under the heading “Non-GAAP and Other Financial Measures”, which is available on SEDAR+ at www.sedarplus.ca
Slide 17: wajax.com
wajax.com Together We Get More Done.