Slide 1: Wajax Financial Results – Q1 2022
Wajax Financial Results – Q1 2022 May 3, 2022
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
Slide 3: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding \\ Forward-Looking Information The foregoing list of factors is not exhaustive. Further information concerning the risks and uncertainties associated with these forward-looking statements and the Corporation’s business may be found in our Annual Information Form for th
Slide 4: Non-GAAP and Additional GAAP Measures
\\ Non-GAAP and Additional GAAP Measures This presentation contains certain non-GAAP and additional GAAP measures that do not have a standardized meaning prescribed by GAAP. Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautio
Slide 5: Highlights – First Quarter
\\ Highlights – First Quarter • Revenue increased due to higher industrial parts and ERS Revenue $439.5 sales in western and eastern Canada and higher mining sales 14% million in western Canada, including one large mining shovel delivery in the current quarter • EBIT increased 18.7% due to higher vo
Slide 6: Revenue by Region
\\ Revenue by Region Q1 2022 • Revenue increased $52.4 million, or 13.5%, to $439.5 million in Q1 2022 versus $387.1 million for the same period in 2021 • Increase was due to higher sales in western and eastern Canada (6)% 4% 33% Note: Totals may not add due to rounding. Wajax Financial Results – Q1
Slide 7: Equipment and Product Support Revenue
\\ Equipment and Product Support Revenue Equipment YoY Change 41.8% 3.3% (1.4)% (17.5)% (1.2)% • Decrease from Q4 2021 was due mainly to lower forestry and power systems sales offset partially by higher mining sales • Decrease from Q1 2021 was due mainly to lower construction and forestry sales offs
Slide 8: IP & ERS Revenue
\\ IP & ERS Revenue Industrial Parts YoY Change 13.5% 40.1% 32.6% 27.0% 24.1% • Increase from Q4 2021 was due to higher sales in all regions • Increase from Q1 2021 was due primarily to strong sales from Tundra Process Solutions Ltd. ("Tundra") and organic strength in bearings sales in all regions,
Slide 9: Revenue by Category
\\ Revenue by Category YTD* Category4 Q1 2022 Q1 2021 Change E W C Heavy Equipment $ 250.5 $ 233.7 $ 16.8 ↓ ↑ ↓ Construction & Forestry 104.1 115.1 (11.0) ↓ ↑ ↓ Mining 50.0 32.5 17.5 ↓ ↑ ↓ Material Handling 38.2 37.0 1.2 ↓ ↑ ↓ Power Systems 58.3 49.1 9.2 ↑ ↑ ↑ Industrial Parts and Services $ 189.0 $
Slide 10: Backlog
\\ Backlog 1 1 Backlog increased by $115.8 million (27.3%) from Q4 2021 to $540.1 million • Increase due to higher orders in most categories, most notably the construction and forestry category and the ERS and industrial parts categories 2 Backlog increased by $263.6 million (95.3%) compared to Q1 2
Slide 11: Inventory
\\ Inventory 1• Total inventory increased $20.4 million compared to Q4 20215 ◦ Inventory of $409.1 million at Q1 2022 increased $20.4 million from Q4 2021 due primarily to higher equipment inventory in the construction and forestry category and higher mining rental equipment and parts inventory, off
Slide 12: Cash Flow and Leverage
\\ Cash Flow and Leverage Cash Flow from Operating Activities 2021 2022 Leverage1 Total committed credit facilities Note 1 2.04x 1.73x 1.39x 1.29x 1.24x 2021 2022 Note 1: Credit facility utilization includes $73.4 million in cash paid as part of the consideration to acquire Tundra offset by a debt r
Slide 13: Balance Sheet
\\ Balance Sheet Adjusted Return On Net Assets (RONA)1 • RONA increased from Q4 2021 due primarily to higher trailing 12-month adjusted EBIT(1) and lower trailing 12- month average net assets • RONA increased from Q1 2021 due primarily to higher trailing 12-month adjusted EBIT(1) Working Capital Eff
Slide 14: 2022 Outlook
\\ 2022 Outlook • Building on 2021's record revenue and strong earnings performance, Wajax had a solid start to 2022. Combined with the Corporation’s strengthened balance sheet and expanded product and service offerings, the Corporation continues to believe that it is ideally positioned to continue
Slide 15: Appendix 1
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, 2022 under the heading “Non-GAAP and Additional GAAP Measures”, which is available on SEDAR at www.sedar.com, for definiti
Slide 17: Appendix 2
Appendix 2 -\\ Together We Get More Done:
Slide 18: Non-GAAP and Additional GAAP Measures
\\ Non-GAAP1 and Additional GAAP Measures Except where noted, all figures are in millions of Canadian dollars, except per share data and ratio calculations. This presentation contains the following non-GAAP and additional GAAP measures that do not have a standardized meaning prescribed by GAAP and a
Slide 19: Non-GAAP and Additional GAAP Measures
\\ Non-GAAP1 and Additional GAAP Measures Reconciliation of the Corporation’s net earnings to EBT, EBIT and Adjusted EBIT and the calculation of the Corporation’s RONA is as follows: For the twelve For the twelve For the twelve months ended months ended months ended March 31 December 31 March 31 202
Slide 20: wajax.com
b viata \\ Together We Get More Done. Wajax.com