Le Lézard
Classified in: Transportation, Business
Subjects: ERN, DIV

Uni-Select Inc. Reports Third Quarter 2018 Financial Results


 

(1) Non-IFRS financial measures. Refer to the "Non-IFRS financial measures" section for further details.  


Unless otherwise indicated in this press release, all amounts are expressed in thousands of US dollars, except per share amounts and percentages.


 

BOUCHERVILLE, QC, Nov. 14, 2018 /CNW Telbec/ - Uni-Select Inc. (TSX: UNS) today reported its financial results for the third quarter ended September 30, 2018.

"Our third quarter results demonstrated our focus on execution with improved organic sales growth in all our business units, higher adjusted EBITDA and strong cash flow generation. During the quarter, we deleveraged our balance sheet, bringing our funded debt to adjusted EBITDA ratio to 3.1x and we amended and extended our credit facility to increase flexibility," said André Courville, Interim President and Chief Executive Officer of Uni-Select.

"On September 18, we announced the formation of a Special Committee of independent members of the Board of Directors to oversee a review of strategic alternatives. Since then, the Special Committee and the Board of Directors have had multiple meetings with its advisors and management to identify, review, analyze and evaluate a comprehensive range of alternatives with the goal of maximizing value for our shareholders."

"We continued to execute on our 20/20 cost savings initiative launched a year ago to generate annual recurring savings of $20.0 million by 2020. To date, we have realized $12.0 million in annualized savings or 60% of the target. In the spirit of continuous improvement and to further drive efficiency, we have identified an additional $5.0 million in cost savings, bringing the total recurring savings to at least $25.0 million by 2020. To achieve the remaining $13.0 million in cost savings, we will need to incur restructuring and other charges estimated at between $9.0 and $11.0 million."

"In conclusion, we have the management team and strategy in place to drive the business forward. We will continue to open greenfields and actively pursue select acquisitions, all in an effort to drive our operations to generate continued growth and increased profitability with the aim of maximizing shareholder value. All of this would not be possible without the on-going support of all stakeholders, including our employees and shareholders," concluded Mr. Courville.

For further information about the Corporation's use of the non-IFRS measures identified in this press release, refer to "Non-IFRS financial measures" section.

 






THIRD QUARTERS


NINE-MONTH PERIODS

2018


2017


2018


2017

Sales

448,845


395,807


1,332,510


1,033,294









EBITDA (1)

29,712


32,181


92,157


84,898

EBITDA margin (1)

6.6%


8.1%


6.9%


8.2%

Adjusted EBITDA (1)

34,924


33,915


98,101


89,548

Adjusted EBITDA margin (1)

7.8%


8.6%


7.4%


8.7%









Net earnings

10,594


11,159


38,860


35,895

Adjusted earnings (1)

15,528


15,851


46,043


43,484









Earnings per share

0.25


0.26


0.92


0.85

Adjusted earnings per share (1)

0.37


0.37


1.09


1.03



(1)

Non-IFRS financial measures. Refer to the "Non-IFRS financial measures" section for further details.

 

THIRD QUARTER RESULTS

Consolidated sales for the third quarter were $448.8 million, a 13.4% increase compared to the same quarter last year, driven by the sales generated from business acquisitions of $47.8 million or 12.1%, essentially from The Parts Alliance UK segment. All three segments reported positive organic growth for the quarter, producing a consolidated organic growth of 3.4%.

The Corporation generated an EBITDA and EBITDA margin of $29.7 million and 6.6%, respectively, compared to $32.2 million and 8.1% in 2017. Adjusted EBITDA was $34.9 million (7.8% of sales) for the quarter, compared to $33.9 million (8.6% of sales) in 2017, an increase of 3.0%. The adjusted EBITDA margin decreased by 80 basis points due to competitive pressure in the FinishMaster US segment, while in 2017, the Canadian Automotive Group segment benefited from a product line changeover incentive. These impacts were partially compensated by a superior absorption of fixed costs as a result of higher sales volume.

Net earnings and adjusted earnings were respectively $10.6 million and $15.5 million, compared to $11.2 million and $15.9 million in 2017. Adjusted earnings decreased by 2.0% compared to the same quarter last year, due to additional finance costs as well as higher depreciation and amortization, entirely related to business acquisitions and investments in capital. These elements were partially compensated by the contribution of The Parts Alliance UK segment and the reduction of the income tax rate for the US operations.

Expanded 20/20 Initiative (25/20 Plan)

On November 14, 2018, in the spirit of continuous improvement and to further drive efficiency, the Corporation announced the expansion of its 20/20 cost savings initiative by at least $5.0 million. The new plan, now referred to as the 25/20 Plan, builds on the 20/20 initiative and expects to generate at least $25.0 million of recurring cost savings, on an annualized basis, by 2020. At the end of the third quarter of 2018, $12.0 million in annualized cost savings were realized under the initial initiative. The 25/20 Plan includes certain cost reduction measures across the three operational segments. It will focus on various optimization initiatives, such as the closure or integration of a dozen locations, supply chain optimization as well as workforce reduction. The slight workforce reduction of less than 5% of total employees will be spread across all business segments and will be related to site integration and optimization actions.  These initiatives are expected to benefit margins in the Canadian Automotive Group as well as The Parts Alliance and support margins at FinishMaster. To achieve the remaining $13.0 million in recurring cost savings, we will need to incur total restructuring and other charges comprised mainly of cash costs of between $9.0 and $11.0 million. These restructuring and other charges will be recognized in the fourth quarter of 2018 and in the following six quarters.

Segmented Results

The FinishMaster US segment is reporting positive organic growth for a second consecutive quarter with sales of $214.2 million, up 3.7% from the same quarter in 2017, entirely from organic growth. This performance is attributable to the efforts from the sales team on driving growth by developing business volume and onboarding new accounts. EBITDA for this segment was $21.3 million, compared to $24.4 million in 2017. The EBITDA margin decrease of 180 basis points was impacted by competitive pressure on the gross margin during the quarter. This element was partially compensated by savings arising from the 20/20 initiative, including the integration of four stores, the alignment of employee benefits to its evolving cost-to-serve model and an improved absorption of fixed costs related to the organic growth.

Sales for the Canadian Automotive Group segment were $131.1 million, compared to $133.6 million in 2017, a decrease of 1.9%, reflecting the impact of a weaker Canadian dollar against the US dollar and the number of billing days, partially compensated by business acquisitions and organic growth of 0.5%. The EBITDA margin decrease of 80 basis points compared to the same quarter in 2017, is mainly attributable to a different revenue mix at a lower gross margin, while benefiting from a product line changeover incentive in the comparative quarter of 2017. Integration efforts to optimize the company-owned stores are ongoing, including the 20/20 initiative, store rebranding, store processes and implementation of the new point of sales (POS) system. These elements were partially compensated by a reduction of the performance-based compensation.

The Parts Alliance UK segment recorded sales of $103.5 million, an increase of 85.8%, benefiting from a full quarter of sales in 2018 and an organic growth of 9.4%. The organic growth was driven by the recent opening of greenfields, expanding the footprint in the UK and providing a superior service for national accounts. The EBITDA margin increased by 220 basis points, mainly benefiting from cost actions taken during the last quarter of 2017 related to the 20/20 initiative and improving payroll productivity. Furthermore, the fixed costs were leveraged by a full quarter of operations and organic growth. These elements were partially offset by investments in greenfield stores affecting the EBITDA margin until reaching the optimized operation level and a different customer mix affecting the gross margin.

NINE-MONTH PERIOD RESULTS

Consolidated sales for the nine-month period were $1,332.5 million, a 29.0% increase compared to the same period last year, driven by the sales generated from business acquisitions of $284.8 million or 27.5%, mainly from The Parts Alliance UK segment. Consolidated organic growth was 1.2%, all three segments reporting positive organic growth for the nine-month period, a direct result of sales initiatives, opportunities generated by future price increases and opening of greenfields.

The Corporation generated an EBITDA and EBITDA margin of $92.2 million and 6.9%, respectively, compared to $84.9 million and 8.2% last year. Adjusted EBITDA was $98.1 million (7.4% of sales) for the period, compared to $89.5 million (8.7% of sales) in 2017, an increase of 9.6%. The adjusted EBITDA margin decreased by 130 basis points, affected by pressure on the gross margin in the FinishMaster US segment and the integration efforts undertaken to optimize the network of company-owned stores in the Canadian Automotive Group segment. These impacts were partially compensated by savings resulting from the 20/20 initiative in the FinishMaster US segment and an improved cost absorption at The Parts Alliance UK segment benefiting from a full nine-month period of operations.

Net earnings and adjusted earnings were respectively $38.9 million and $46.0 million, compared to $35.9 million and $43.5 million last year. Adjusted earnings increased by 5.9% compared to the same period last year and mainly resulted from the contribution of The Parts Alliance UK segment and the reduction of the income tax rate for the US operations. These elements were partially offset by additional finance costs as well as depreciation and amortization, entirely related to business acquisitions and investments in capital.

Segmented Results

The FinishMaster US segment recorded sales of $626.5 million, up 1.8% from the same period in 2017, supported by business acquisitions representing a growth of $7.3 million or 1.2%. The positive organic growth of 0.6% for the period is resulting from sales initiatives, customer investments and opening of two greenfields. EBITDA for this segment was $62.7 million, compared to $71.7 million in 2017. The EBITDA margin decrease of 170 basis points is the result of competitive pressure on gross margin and lower special buys for the period.

Sales for the Canadian Automotive Group segment were $381.4 million, compared to $361.9 million in 2017, an increase of 5.4%, resulting from business acquisitions, the impact of the Canadian dollar on its conversion to US dollar and organic growth. The organic growth of 0.9% for the period is principally from customers taking advantage of future price increases. The EBITDA margin decrease of 100 basis points is mainly due to the integration efforts undertaken to optimize its growing network of company-owned stores and the internalization of the servers, which was a favorable one-time saving in 2017. These elements were partially compensated by higher volume rebates, additional contribution from the acquired stores, as well as a reduction of the performance-based compensation.

The Parts Alliance UK segment recorded sales of $324.6 million, an increase of 482.8%, as the figures of last year included sales since the acquisition on August 7, 2017. The organic growth of 9.4% benefited from the opening of greenfields. The EBITDA margin increased by 350 basis points, benefiting from cost actions taken during the last quarter of 2017 improving payroll productivity, as well as from an improved absorption of fixed costs related to a full nine months of operations. The higher EBITDA margin for the period, when compared to the current quarter, is explained by seasonality, the peak season being the first semester, enabling an improved leverage of its fixed cost base. The opening of greenfields impacted the EBITDA margin by 20 basis points for the period, as expected.

DIVIDENDS

On November 14, 2018, the Uni-Select Board of Directors declared a quarterly dividend of C$0.0925 per share payable on January 15, 2019 to shareholders of record as at December 31, 2018. This dividend is an eligible dividend for income tax purposes.

OUTLOOK

The information included within this section contains guidance for Uni-Select in 2018, excluding any potential impact from the review of strategic alternatives:

 


Uni-Select

Consolidated adjusted EBITDA margin

6.75% - 7.25%

Consolidated organic sales growth

0.8% - 2.6%

Consolidated effective tax rate

22.0% - 24.0%



Segment

Organic Sales
Growth

FinishMaster US

0.5% - 2.0%

Canadian Automotive Group

0.0% - 1.5%

The Parts Alliance UK

6.0% - 8.0%



The above-mentioned information is related to the 2018

 financial year and may differ from quarter to quarter due

 to seasonality.

 

Other

As well, Uni-Select anticipates investments between $26.0 million and $29.0 million in 2018 on capital leases for vehicle fleet, hardware equipment, software and others.

In Summary

Conference Call

Uni-Select will host a conference call to discuss its third quarter results for 2018 on November 14, 2018 at 8:00 AM Eastern. To join the conference, dial 1 866 865-3087 (or 1 647 427-7450 for International calls).

A recording of the conference call will be available from 11:00 AM Eastern on November 14, 2018, until 11:59 PM Eastern on December 14, 2018. To access the replay, dial 1 855 859-2056 followed by 8958638.

A live webcast of the quarterly results conference call will also be accessible through the "Investors" section of our website at uniselect.com where a replay will also be archived. Listeners should allow ample time to access the webcast and supporting slides.

ABOUT UNI-SELECT

Uni-Select is a leader in the distribution of automotive refinish and industrial paint and related products in North America, as well as a leader in the automotive aftermarket parts business in Canada and in the UK. Uni?Select is headquartered in Boucherville, Québec, Canada, and its shares are traded on the Toronto Stock Exchange (TSX) under the symbol UNS.

In Canada, Uni-Select supports over 16,000 automotive repair and collision repair shops through a growing national network of more than 1,100 independent customers and over 50 company-owned stores, many of which operate under the Uni-Select BUMPER TO BUMPER®, AUTO PARTS PLUS® AND FINISHMASTER® store banner programs. It also supports over 3,900 shops and stores through its automotive repair/installer shop banners, as well as through its automotive refinish banners.

In the United States, Uni-Select, through its wholly-owned subsidiary FinishMaster, Inc., operates a national network of over 200 automotive refinish company-owned stores under the FINISHMASTER banner which services a network of over 30,000 customers annually, of which it is the primary supplier to over 6,800 collision repair centre customers.

In the UK and Ireland, Uni-Select, through its Parts Alliance group of subsidiaries, is a leading distributor of automotive parts supporting over 23,000 customer accounts with a network of close to 200 locations including over 170 company-owned stores.


CAUTION REGARDING FORWARD-LOOKING INFORMATION

Certain statements made in this press release are forward-looking statements. These statements include, without limitation, statements relating to our 2018 financial guidance (including, without limitation, adjusted EBITDA margin and organic sales by business unit) and other statements that are not historical facts. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, project, strategy, target and other similar expressions or future or conditional verbs such as aim, anticipate, believe, could, expect, intend, may, plan, seek, should, strive and will. All such forward-looking statements are made pursuant to the "safe harbour" provisions of applicable Canadian securities laws.

Forward-looking statements are, by their very nature, subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which may cause expressed expectations to be significantly different from those listed or implied within this press release and our business outlook, objectives, plans and strategic priorities may not be achieved. As a result, we cannot guarantee that any forward-looking statement will materialize and we caution you against relying on any of these forward?looking statements. The forward-looking information contained herein is made as of the date of this press release, and Uni-Select does not undertake to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. Forward?looking statements are presented in this press release for the purpose of assisting investors and others in understanding certain key elements of our expected 2018 financial results, as well as our objectives, strategic priorities and business outlook for 2018, and in obtaining a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

MATERIAL ASSUMPTIONS

A number of economic, market, operational and financial assumptions were made by Uni-Select in preparing its forward-looking statements contained in this press release, including, but not limited to:

Economic Assumptions:

Market Assumptions:

Our 2018 forward-looking statements also reflect various market assumptions, in particular:

Operational and Financial Assumptions:

The 2018 forward-looking statements are also based on various internal operational and financial assumptions, including, but not limited to:

The foregoing assumptions, although considered reasonable by Uni-Select on the date of this press release, may prove to be inaccurate. Accordingly, our actual results could differ materially from our expectations set forth in this press release.

MATERIAL RISKS

Important risk factors that could cause our assumptions and estimates to be inaccurate and actual results of events to differ materially from those expressed in, or implied by, our forward-looking statements, including our 2018 financial guidance, are listed below. The realization of our forward-looking statements, including our ability to meet our 2018 financial guidance, essentially depends on our business performance which, in turn, is subject to many risks. Accordingly, readers are cautioned that any of the following risks could have a material adverse effect on our forward-looking statements. These risks include, but are not limited to economic climate, changes in legislation or government regulations or policies, inflation, distance travelled, growth in vehicle fleet, products supply and inventory management, distribution by the manufacturer directly to consumers, technology, environmental risks, legal and tax risks, risks related to Uni-Select's business model and strategy, integration of acquired business, competition, business and financial systems, human resources, liquidity risk, credit risk, foreign exchange risk and interest rates.

For additional information with respect to risks and uncertainties, refer to the Annual Report filed by Uni-Select with the Canadian securities commissions.

ADDITIONAL INFORMATION

The Management's Discussion and Analysis (MD&A), consolidated financial statements and related notes for the third quarter and nine-month period of 2018 are available in the "Investors" section on the Corporation's website at uniselect.com as well as on SEDAR at sedar.com. The Corporation's Annual Report may also be found on these websites as well as other information related to Uni-Select, including its Annual Information Form.  

NON-IFRS FINANCIAL MEASURES

The information included in this Press release 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 by other entities. The Corporation is of the opinion that users of its Press release may analyze its results based on these measurements. The following presents performance measures used by the Corporation which are not defined by IFRS.

Organic growth ? This measure consists of quantifying the increase in consolidated sales between two given periods, excluding the impact of acquisitions, sales and disposals of stores, exchange-rate fluctuations and when necessary, the variance in the number of billing days. This measure enables Uni-Select to evaluate the intrinsic trend in the sales generated by its operational base in comparison with the rest of the market. Determining the rate of organic growth, based on findings that Management regards as reasonable, may differ from the actual rate of organic growth.

EBITDA ? This measure represents net earnings excluding finance costs, depreciation and amortization and income taxes. This measure is a financial indicator of a corporation's ability to service and incur debt. It should not be considered by an investor as an alternative to sales or net earnings, as an indicator of operating performance or cash flows, or as a measure of liquidity, but as additional information.

Adjusted EBITDA, adjusted earnings and adjusted earnings per share ? Management uses adjusted EBITDA, adjusted earnings and adjusted earnings per share to assess EBITDA, net earnings and net earnings per share from operating activities, excluding certain adjustments, net of income taxes (for adjusted earnings and adjusted earnings per share), which may affect the comparability of the Corporation's financial results. Management considers that these measures facilitate the analysis and provide a better understanding of the Corporation's operational performance. The intent of these measures is to provide additional information.

These adjustments include, among other things, severance and retention bonuses related to Management changes, restructuring and other charges as well as net transaction charges, amortization of the premium on foreign currency options and amortization of intangible assets related to The Parts Alliance acquisition. Management considers The Parts Alliance acquisition as transformational. The exclusion of these items does not indicate that they are non-recurring.

EBITDA margin and adjusted EBITDA margin ? The EBITDA margin is a percentage corresponding to the ratio of the EBITDA to sales. The adjusted EBITDA margin is a percentage corresponding to the ratio of adjusted EBITDA to sales.

Free cash flows - This measure corresponds to the cash flows from operating activities according to the consolidated statements of cash flows adjusted for the following items: changes in working capital items, acquisitions of property and equipment and difference between amounts paid for post-employment benefits and current period expenses. Uni-Select considers the free cash flows to be a good indicator of financial strength and of operating performance because it shows the amount of funds available to manage growth in working capital, pay dividends, repay debt, reinvest in the Corporation and capitalize on various market opportunities that arise.

The free cash flows exclude certain variances in working capital items (such as trade and other receivables, inventory and trade and other payables) and other funds generated and used according to the consolidated statements of cash flows. Therefore, it should not be considered as an alternative to the consolidated statements of cash flows, or as a measure of liquidity, but as additional information.

Total net debt - This measure consists of long-term debt, including the portion due within a year, net of cash.

Funded debt to adjusted EBITDA - This ratio corresponds to total net debt to adjusted EBITDA.

The following table presents a reconciliation of organic growth.

 





Third quarters

Nine-month periods


2018


2017


2018


2017

FinishMaster US

214,209


206,495


626,542


615,683

Canadian Automotive Group

131,128


133,612


381,369


361,911

The Parts Alliance UK

103,508


55,700


324,599


55,700

Sales

448,845


395,807


1,332,510


1,033,294




%




%


Sales variance

53,038


13.4


299,216


29.0



Conversion effect of the Canadian dollar

6,264


1.6


(4,030)


(0.4)



Number of billing days

2,094


0.5


1,514


0.1



Acquisitions

(47,751)


(12.1)


(284,775)


(27.5)

Consolidated organic growth

13,645


3.4


11,925


1.2


 

The following table presents a reconciliation of EBITDA and adjusted EBITDA.

 







Third quarters


Nine-month periods



2018


2017


%

2018


2017


%

Net earnings

10,594


11,159



38,860


35,895




Income tax expense

3,788


7,721



8,669


19,832




Depreciation and amortization

10,031


8,255



29,437


19,670




Finance costs, net

5,299


5,046



15,191


9,501



EBITDA

29,712


32,181


(7.7)

92,157


84,898


8.6

EBITDA margin

6.6%


8.1%



6.9%


8.2%




Special items

5,212


1,734



5,944


4,650



Adjusted EBITDA

34,924


33,915


3.0

98,101


89,548


9.6

Adjusted EBITDA margin

7.8%


8.6%



7.4%


8.7%



 

The following table presents a reconciliation of adjusted earnings and adjusted earnings per share.

 







Third quarters


Nine-month periods



2018


2017


%

2018


2017


%

Net earnings

10,594


11,159


(5.1)

38,860


35,895


8.3

Special items, net of taxes

3,886


2,733



4,070


4,840



Amortization of the premium on foreign currency options, net of taxes

-


1,213



-


2,003



Amortization of intangible assets related to the acquisition of The Parts Alliance, net of taxes

1,048


746



3,113


746



Adjusted earnings

15,528


15,851


(2.0)

46,043


43,484


5.9

Earnings per share

0.25


0.26


(3.8)

0.92


0.85


8.2

Special items, net of taxes

0.09


0.06



0.10


0.11



Amortization of the premium on foreign currency options, net of taxes

-


0.03



-


0.05



Amortization of intangible assets related to the acquisition of The Parts Alliance, net of taxes

0.02


0.02



0.07


0.02



Adjusted earnings per share

0.37


0.37


0.0

1.09


1.03


5.8

 

The following table presents a reconciliation of free cash flows.

 





Third quarters

Nine-month periods


2018


2017


2018


2017

Cash flows from operating activities

72,600


48,800


81,181


78,534


Changes in working capital

(36,623)


(9,418)


(3,790)


8,651


35,977


39,382


77,391


87,185


Acquisitions of property and equipment

(4,089)


(4,655)


(10,716)


(8,434)


Difference between amounts paid for post-employment benefits and current period expenses

(173)


235


(490)


43

Free cash flows

31,715


34,962


66,185


78,794

 

UNI-SELECT INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS







(In thousands of US dollars, except per share amounts, unaudited)



Quarters

ended Sept. 30,


Nine-month periods

ended Sept. 30,




2018


2017


2018


2017











Sales



448,845


395,807


1,332,510


1,033,294

Purchases, net of changes in inventories



302,610


267,330


891,944


708,207

Gross margin



146,235


128,477


440,566


325,087











Employee benefits



75,951


65,002


233,134


161,215

Other operating expenses



35,360


29,560


109,331


74,324

Special items



5,212


1,734


5,944


4,650

Earnings before finance costs, depreciation and amortization and income taxes


29,712


32,181


92,157


84,898











Finance costs, net



5,299


5,046


15,191


9,501

Depreciation and amortization



10,031


8,255


29,437


19,670

Earnings before income taxes



14,382


18,880


47,529


55,727

Income tax expense



3,788


7,721


8,669


19,832

Net earnings



10,594


11,159


38,860


35,895











Earnings per share (basic and diluted)



0.25


0.26


0.92


0.85











Weighted average number of common shares outstanding (in thousands)











Basic



42,203


42,274


42,235


42,257


Diluted



42,257


42,424


42,427


42,446





















 

UNI-SELECT INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME







(In thousands of US dollars, unaudited)



Quarters

ended Sept. 30,


Nine-month periods

ended Sept. 30,




2018


2017


2018


2017











Net earnings



10,594


11,159


38,860


35,895











Other comprehensive income (loss)










Items that will subsequently be reclassified to net earnings:











Effective portion of changes in the fair value of cash flow hedges (net of income tax of $74 and $328 for the quarter and the nine-month period ($26 for both the quarter and nine-month period in 2017))



216


-


956


(69)












Net change in the fair value of derivative financial instruments designated as cash flow hedges transferred to net earnings (net of income tax of $2 and $37 for the quarter and the nine-month period ($10 and $15 respectively in 2017))



(6)


26


106


39












Unrealized exchange gains (losses) on the translation of financial statements to the presentation currency



(6,637)


5,849


(4,166)


8,778












Unrealized exchange gains (losses) on the translation of debt designated as a hedge of net investments in foreign operations (no income tax for both the quarter and the nine-month period (net of income tax of $324 and $550 respectively in 2017))



6,231


2,013


(5,312)


3,414




(196)


7,888


(8,416)


12,162

Items that will not subsequently be reclassified to net earnings:











Remeasurements of long-term employee benefit obligations (net of income tax of $759 and $1,016 for the quarter and the nine-month period ($1,132 and $46 respectively in 2017))



2,201


2,949


2,947


(94)











Total other comprehensive income (loss)



2,005


10,837


(5,469)


12,068

Comprehensive income



12,599


21,996


33,391


47,963





















 

UNI-SELECT INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
















Attributable to shareholders

(In thousands of US dollars, unaudited)



Share capital


Contributed
surplus


Retained
earnings


Accumulated
other
comprehensive
income (loss)


Total
equity

























Balance, December 31, 2016



96,924


4,260


401,420


(30,242)


472,362













Net earnings



-


-


35,895


-


35,895

Other comprehensive income (loss)



-


-


(94)


12,162


12,068

Comprehensive income



-


-


35,801


12,162


47,963













Contributions by and distributions to shareholders:













Issuance of common shares



661


-


-


-


661


Dividends



-


-


(8,739)


-


(8,739)


Stock-based compensation



-


625


-


-


625




661


625


(8,739)


-


(7,453)













Balance, September 30, 2017



97,585


4,885


428,482


(18,080)


512,872













Balance, December 31, 2017



97,585


5,184


432,470


(17,262)


517,977













Net earnings



-


-


38,860


-


38,860

Other comprehensive income (loss)



-


-


2,947


(8,416)


(5,469)

Comprehensive income (loss)



-


-


41,807


(8,416)


33,391













Contributions by and distributions to shareholders:













Repurchase and cancellation of common shares



(190)


-


(1,232)


-


(1,422)


Issuance of common shares



1,096


-


-


-


1,096


Transfer upon exercise of stock option



249


(249)


-


-


-


Dividends



-


-


(9,109)


-


(9,109)


Stock-based compensation



-


1,125


-


-


1,125




1,155


876


(10,341)


-


(8,310)













Balance, September 30, 2018



98,740


6,060


463,936


(25,678)


543,058

























 

UNI-SELECT INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS







(In thousands of US dollars, unaudited)



Quarters

ended Sept. 30,


Nine-month periods

ended Sept. 30,




2018


2017


2018


2017











OPERATING ACTIVITIES










Net earnings



10,594


11,159


38,860


35,895

Non-cash items:











Restructuring and other charges



-


(523)


-


(523)


Finance costs, net



5,299


5,046


15,191


9,501


Depreciation and amortization



10,031


8,255


29,437


19,670


Income tax expense



3,788


7,721


8,669


19,832


Amortization and reserves related to incentives granted to customers



4,435


4,636


12,420


12,287

Other non-cash items



991


(22)


464


899

Changes in working capital items



36,623


9,418


3,790


(8,651)

Interest paid



(4,654)


(1,998)


(13,904)


(4,824)

Income taxes recovered (paid)



5,493


5,108


(13,746)


(5,552)

Cash flows from operating activities



72,600


48,800


81,181


78,534











INVESTING ACTIVITIES










Business acquisitions



-


(273,940)


-


(341,271)

Net balance of purchase price



(1,035)


(1,823)


(6,833)


(5,953)

Cash held in escrow



-


(2,020)


-


(7,531)

Premium on foreign currency options paid



-


-


-


(6,631)

Proceeds from disposal of foreign exchange options



-


6,174


-


6,174

Advances to merchant members and incentives granted to customers



(6,246)


(5,835)


(33,416)


(20,947)

Reimbursement of advances to merchant members



1,240


864


4,275


4,388

Acquisitions of property and equipment



(4,089)


(4,655)


(10,716)


(8,434)

Proceeds from disposal of property and equipment



304


206


887


446

Acquisitions and development of intangible assets



(792)


(1,088)


(2,104)


(2,829)

Other provisions paid



-


-


(108)


-

Cash flows used in investing activities



(10,618)


(282,117)


(48,015)


(382,588)











FINANCING ACTIVITIES










Increase in long-term debt



110,599


293,758


208,512


435,247

Repayment of long-term debt



(182,419)


(18,342)


(252,043)


(86,834)

Net increase (decrease) in merchant members' deposits in the guarantee fund


68


16


514


(98)

Repurchase and cancellation of shares



-


-


(1,422)


-

Issuance of shares



958


-


1,096


661

Dividends paid



(2,972)


(3,086)


(9,230)


(8,517)

Cash flows from (used in) financing activities



(73,766)


272,346


(52,573)


340,459

Effects of fluctuations in exchange rates on cash



(195)


534


(214)


626

Net increase (decrease) in cash



(11,979)


39,563


(19,621)


37,031

Cash, beginning of period



23,030


19,793


30,672


22,325

Cash, end of period



11,051


59,356


11,051


59,356





















 

UNI-SELECT INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION







(In thousands of US dollars, unaudited)



Sept. 30,


Dec. 31,




2018


2017







ASSETS






Current assets:







Cash



11,051


30,672


Cash held in escrow



2,020


8,147


Trade and other receivables



283,384


236,811


Income taxes receivable



26,592


29,279


Inventory



468,805


458,354


Prepaid expenses



11,900


10,196


Total current assets



803,752


773,459

Investments and advances to merchant members



42,448


30,628

Property and equipment



80,446


78,644

Intangible assets



210,600


231,365

Goodwill



367,484


372,119

Derivative financial instruments



1,681


-

Deferred tax assets



5,116


10,174







TOTAL ASSETS



1,511,527


1,496,389







LIABILITIES






Current liabilities:







Trade and other payables



510,086


446,370


Balance of purchase price, net



5,182


15,469


Income taxes payable



8,978


16,831


Dividends payable



3,031


3,110


Current portion of long-term debt and merchant members' deposits in the guarantee fund



4,203


37,098


Total current liabilities



531,480


518,878

Long-term employee benefit obligations



14,782


20,985

Long-term debt



400,444


411,585

Merchant members' deposits in the guarantee fund



5,922


5,543

Balance of purchase price, net



-


2,944

Other provisions



1,165


1,331

Derivative financial instruments



2,503


1,041

Deferred tax liabilities



12,173


16,105

TOTAL LIABILITIES



968,469


978,412

EQUITY






Share capital



98,740


97,585

Contributed surplus



6,060


5,184

Retained earnings



463,936


432,470

Accumulated other comprehensive loss



(25,678)


(17,262)

TOTAL EQUITY



543,058


517,977







TOTAL LIABILITIES AND EQUITY



1,511,527


1,496,389













 

SOURCE Uni-Select Inc.


These press releases may also interest you

at 06:16
Autoliv, Inc. , the worldwide leader in automotive safety systems, today announced that as of March 28, 2024, the total number of issued shares of common stock is 86,126,221 of which 81,373,679 shares are outstanding.  Autoliv retired 1,370,057...

at 06:00
Cheche Group Inc.  ("Cheche", "the Company" or "we"), China's leading auto insurance technology platform, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2023. Financial and Operational...

at 06:00
China Automotive Systems, Inc. ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced its unaudited financial results for the fourth quarter and the audited results for the fiscal year ended...

at 06:00
The report "Automotive Fabrics Market by Vehicle Type (Passenger Cars, Light Commercial Vehicle, Heavy Trucks, Buses & Coaches), Application (Floor Coverings, Upholstery, Pre-Assembled Interior Companents, Tires, Safety-Belts, Airbags)- Global...

at 06:00
Highlights for FY24 Q4 Revenues of $2,691.8 million, a decrease of $384.5 million or 12.5% compared to the same period last year,...

at 05:51
On March 21, AAC Technologies (2018.HK) held its 2023 Annual Results Press Conference in Hong Kong. In 2023, the Group recorded a...



News published on and distributed by: