Slide 1: Wajax Corporation Financial Results Q1 2024
WAJAX CORPORATION FINANCIAL RESULTS Q1 2024 May 2, 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 119 branches coast-to-coast A broad range of industrial products and services Diverse market and sector experience REVENUE SOURCES Q1 2024 ($ millions) Industrial Parts and Engineered Repair Services (ERS) 50% $482.3M IN REVENUE IN Q1 2
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 – First Quarter
HIGHLIGHTS – FIRST QUARTER Higher gross profit margins help to offset revenue decline -6.5% -5% -28% -54% REVENUE GROSS ADJUSTED ADJUSTED YTD TRIF3 $482.3 PROFIT EBITDA1 BASIC EPS1 million MARGIN1 $40.7 $0.59 0.54 million per share • Lower 22.0% construction and • Adjusted to • Five recordable fores
Slide 8: Revenue by Region
REVENUE BY REGION Six consecutive quarters of growth in central Canada Revenue by Region ($ millions) 4% (10)% (8)% Note: Totals may not add due to rounding. Together We Get More Done. 8 Wajax Financial Results - Q1 2024 (May 2, 2024)
Slide 9: Heavy Equipment and Product Support Revenue
HEAVY EQUIPMENT AND PRODUCT SUPPORT REVENUE Equipment YoY Change 12.8% 10.6% (8.0)% (21.6)% (25.8)% • Decrease from Q4 2023 due primarily to lower construction and forestry revenue in all regions • Decrease from Q1 2023 was due primarily to lower construction and forestry sales in western and easter
Slide 10: Industrial Parts and ERS Revenue
INDUSTRIAL PARTS AND ERS REVENUE Industrial Parts YoY Change 18.6% 15.7% 19.4% (1.4)% 1.0% • Increase from Q4 2023 was due primarily to higher sales in western Canada ERS YoY Change 38.5% 24.3% 10.0% 42.8% (0.9)% • Decrease from Q4 2023 was due to lower revenues in all regions Together We Get More D
Slide 11: Revenue by Category
REVENUE BY CATEGORY Revenue decline driven primarily by lower Construction and Forestry equipment sales in western and eastern Canada YTD* CATEGORY4 Q1 2024 Q1 2023 CHANGE W C E HEAVY EQUIPMENT $ 243.2 $ 277.8 $ (34.6) ↓ — ↓ Construction and Forestry 92.5 121.4 (28.9) ↓ ↑ ↓ Mining 42.4 41.7 0.7 — ↓
Slide 12: Backlog and Inventory
Backlog 2 1 BACKLOG1 1. Backlog increased by $33.1 million (6.0%) from Q4 2023 to $587.1 million 2. Backlog increased by $56.4 million (10.6%) compared to Q1 2023 Inventory 2 1 INVENTORY 1. Total inventory of $747.4 million increased $116.4 million compared to Q4 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 2.16x 2.20x 1.98x 1.74x 1.76x Working capital efficiency has decreased from Q4 2023 due to the higher trailing four quarter average working capital and t
Slide 14: 2024 Outlook
2024 OUTLOOK • Wajax continues to see solid fundamentals in many of the markets Wajax serves – particularly in mining and energy, supported by relatively elevated commodity prices and sustained customer budgeting for capital projects • Effective March 1, 2024, Hitachi Construction Machinery Americas
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 months ended March 31, 2024 under the heading “Non-GAAP and Other Financial Measures”, which is available on SEDAR+ at www.sedarplus.ca, for definit
Slide 17: wajax.com
wajax.com Together We Get More Done.