Uni-Select — Q1 2021 Earnings Presentation
27 slides from Uni-Select's earnings presentation, May 13, 2021
Slide 1: Q1 2021 Conference Call
Q1 2021 (Ended March 31, 2021) Conference Call May 13, 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 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 pre- COVID-19 120% 8.1%
Slide 5: Foreign Exchange – Positive Impact on Q1 Sales
Foreign Exchange – Positive Impact on Q1 Sales The value of the U.S. dollar depreciated in Q1 compared to the Canadian dollar and the British pound which resulted in higher overall sales for Uni-Select USD/CAD USD/GBP $1.45 Q1-21 £0.85 Q1-21 $1.40 £0.80 $1.35 $1.30 £0.75 $1.25 £0.70 $1.20 £0.65 $1.1
Slide 6: Q1 2021 Highlights
UNI-SELECT. Q1 2021 HIGHLIGHTS
Slide 7: Conso - Strong Start to the Year
Conso - Strong Start to the Year • Sales var. (9.2%) mainly due to COVID-19: Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) (+) CAG performance (+) FX $28 (-) Slower recovery in the $408 $370 $25 refinish market 7.6% (-) Billing days $15 $17 • Organic growth(1) in line 4.1% with second half of 2020 • Ad
Slide 8: FM – Slower Market Recovery
FM – Slower Market Recovery Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) • Slower sales recovery due to COVID-19 impact on the $12.1 market $202 $10.1 $163 $158 $8.4 • Organic growth(1) in line $155 $7.9 6.4% with the CCC data in the $133 6.0% $4.5 geographies in which FM operates Q1-20 Q2-20 Q3-20 Q4
Slide 9: CAG – Robust & Sustained Results
CAG – Robust & Sustained Results • Sales increased 5.7%: Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) (+) FX $137 (+) Acquisitions $19.1 (-) Billing days $125 $114 $115 $109 $13.4 $12.9 $11.8 • Organic growth(1) was 0.3%: 10.2% (+) Performance of DCs $2.7 (-) Lower volume of sales 2.5% in network of s
Slide 10: TPA – Sustained Improvements in Results
TPA – Sustained Improvements in Results Sales (M$) EBITDA(1) & Adj. EBITDA(1) (M$) • Sales var. +0.2%: (+) FX $97 $95 $97 $87 (-) Impact from COVID-19 (-) Billing days $9.9 $8.7 $55 $6.7 • Organic growth(1) in line 10.2% $4.7 with second half of 2020 4.8% $0.3 • Adj. EBITDA(1) margin up 540bps: Q1-2
Slide 11: Q1 2021 Liquidity & Capital Resources
Q1 2021 LIQUIDITY & CAPITAL RESOURCES 11
Slide 12: Doubled FCF on Higher Profitability
Doubled FCF(2) on Higher Profitability CFO(1) (M$) Free Cash Flow(2) (M$) • CFO and FCF(1) increased due to improved $62 $33 profitability $48 $27 • Managed working capital $35 $16 proactively: $14 $13 • Strong cash collection efforts -$1 • Active inventory Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20
Slide 13: Managed Capital Investments
Managed Capital Investments $45 • In Q1-21 we invested: Dividends were (+) Capex $2M $12 suspended in (+) Merchant advances $4M the Spring of 2020 • 2021 capex investment is phased towards the $10 $24 second half of the year $6 $4 $22 $6 $6 $1 $8 $4 $2 2019 2020 Q1-21 Acquisitions Net capex & intang
Slide 14: Reduced Leverage Ratio
Reduced Leverage Ratio Total Net Debt(1) Total Net Debt to Adj. EBITDA(1) • Total net debt only 468 increased slightly 4.6x 4.3x 444 4.2x compared to Q4-20 due to: 96 397 383 4.0x 1.0x 3.8x 94 370 1.1x 1.1x • Proactive working capital 97 0.8x 101 98 1.0x management 3.6x 3.2x • Improved profitability
Slide 15: Ample Liquidity $267M
Ample Liquidity Available Liquidity (M$) • Total available liquidity including cash net of letter of credits, is $267M as at Q1-21 $202 $216 $254 $267 • In compliance with all $285 covenants as at Q1-21 $373 $349 $311 $280 $298 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Used Available Total Available Liquidity(1
Slide 16: 2021 Outlook
UNI-SELECT. 2021 OUTLOOK 16
Slide 17: 2021 Outlook
2021 Outlook Q2-21 Consolidated Sales 2021 - Business Segments • April consolidated organic growth higher than LY; • FM sales: 2021 sales expected to be up over 2020. however Q2 overall organic sales are expected to be Market recovery is expected on a regional basis. lower than Pre- COVID (2019) lev
Slide 18: Seasonality of UNS Results
Seasonality of UNS Results While the impact of COVID-19 has temporarily distorted the typical seasonality of UNS’s results, Q2-21 is expected to be strong given weak Q2-20 comparables The seasonality might be impacted in the future due to market volatility created by COVID-19 Q1 Q2 Q3 Q4 FinishMaste
Slide 19: Appendix
UNI-SELECT. APPENDIX 19
Slide 20: 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 21: 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 Adjusted earnings and considers that these measures
Slide 22: 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 12 to the Total net debt interim condensed consolidated financial statements), net of cash. Total net debt to This ratio corresponds to total net debt to adjusted E
Slide 23: Reconciliation of Consolidated Organic Growth
Non-IFRS Financial Measures (cont’d) Reconciliation of Consolidated Organic Growth First quarters 2021 2020 FinishMaster US 158.2 202.2 Canadian Automotive Group 115.2 108.9 The Parts Alliance UK 96.8 96.5 Sales 370.1 407.7 (in %) Sales variance (37.6) (9.2) Conversion effect of the Canadian dollar
Slide 24: Reconciliation of EBITDA
Non-IFRS Financial Measures (cont’d) Reconciliation of EBITDA First quarters 2021 2010 % Net earnings (loss) 0.2 (6.7) Income tax expense (recovery) 0.3 (1.9) Finance costs, net 8.9 7.1 Depreciation and amortization 15.4 16.6 EBITDA 24.8 15.1 64.2 EBITDA margin 6.7% 3.7% Special items 3.4 1.7 Adjust
Slide 25: Reconciliation of Adjusted Earnings and Adjusted EPS
Non-IFRS Financial Measures (cont’d) Reconciliation of Adjusted Earnings and Adjusted EPS First quarters 2021 2020 % Net earnings (loss) 0.2 (6.7) 103.2 Special items, net of taxes 2.6 1.3 Amortization of intangible assets related to the acquisition of 0.9 1.2 The Parts Alliance, net of taxes Adjust
Slide 26: Reconciliation of Free Cash Flows
Non-IFRS Financial Measures (cont’d) Reconciliation of Free Cash Flows First quarters 2021 2020 Cash flows used in operating activities (0.5) (12.7) Changes in working capital 28.4 29.2 Acquisitions of property and equipment (1.2) (2.6) Difference between amounts paid for post-employment benefits 0.
Slide 27: Uni-Select
UNI-SELECT. UNISELECT.COM