Slide 1: Wajax Corporation Financial Results Q4 2023
WAJAX CORPORATION FINANCIAL RESULTS Q4 2023 March 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 165-year operating history 119 branches coast-to-coast A broad range of industrial products and services Diverse market and sector experience REVENUE SOURCES Q4 2023 REVENUE SOURCES FY 2023 ($ millions) ($ millions) Industrial Parts Industrial Parts and Engineere
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 – Fourth Quarter
HIGHLIGHTS – FOURTH QUARTER Strong Adjusted EBITDA1 performance REVENUE GROSS ADJUSTED ADJUSTED FY TRIF3 PROFIT EBITDA1 BASIC EPS1 $542.6 1.01 million MARGIN1 $47.2 $0.83 per share 21.2% million • Seven • Increased recordable • Adjusted to exclude construction and incidents occurred • Higher margins
Slide 8: Revenue by Region
REVENUE BY REGION Strong revenue growth in eastern Canada and continued strength in central Canada Q4 2023 ($ millions) FY 2023 ($ millions) 21% 22% 15% 12% (16)% 4% Note: Totals may not add due to rounding. Together We Get More Done. 8 Wajax Financial Results - Q4 2023 (March 5, 2024)
Slide 9: Heavy Equipment and Product Support Revenue
HEAVY EQUIPMENT AND PRODUCT SUPPORT REVENUE Equipment YoY Change 68.8% 12.8% 10.6% (8.0)% (21.6)% • Increase from Q3 2023 due primarily to higher construction revenue in all regions and higher forestry revenue in western and central Canada • Decrease from Q4 2022 was due primarily to lower mining, a
Slide 10: Industrial Parts and ERS Revenue
INDUSTRIAL PARTS AND ERS REVENUE Industrial Parts YoY Change 26.9% 18.6% 15.7% 19.4% (1.4)% • Decrease from Q3 2023 was due primarily to lower sales in western Canada • Decrease from Q4 2022 was due to lower sales in western Canada offset partially by higher sales in eastern Canada ERS YoY Change 17
Slide 11: Revenue by Category
REVENUE BY CATEGORY Wajax’s ERS business experienced strong growth in Q4 2023 FY* CATEGORY4 Q4 2023 Q4 2022 CHANGE FY 2023 FY 2022 CHANGE W C E HEAVY EQUIPMENT $ 303.0 $ 330.8 $ (27.8) $ 1,195.3 $ 1,151.6 $ 43.7 ↓ ↑ ↑ Construction and Forestry 146.2 132.7 13.5 542.7 516.4 26.3 ↓ ↑ ↑ 1 1 Mining 39.4
Slide 12: Backlog and Inventory
Backlog 2 1 BACKLOG1 1. Backlog decreased by $45.3 million (-7.6%) from Q3 2023 to $554.0 million 2. Backlog increased by $85.2 million (18.2%) compared to Q4 2022 Inventory 2 1 INVENTORY 1. Total inventory of $630.9 million decreased $28.0 million compared to Q3 2023 2. Total inventory increased $1
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 as at December 31, 2023 2.16x 1.98x 1.74x 1.76x 1.13x Working capital efficiency has decreased from Q3 2023 due to the higher trailing four quarter avera
Slide 14: 2024 Outlook
2024 OUTLOOK • Solid fundamentals in many of the markets Wajax serves – particularly mining, energy and construction, supported by relatively elevated key commodity prices and sustained customer budgeting for capital projects • In addition to expected growth in our heavy equipment business over the
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 twelve months ended December 31, 2023 under the heading “Non-GAAP and Other Financial Measures”, which is available on SEDAR+ at www.sedarplus.c
Slide 17: wajax.com
wajax.com Together We Get More Done.