Financial Results

Financial Results

Uni-Select Reports its First Quarter Results and Announces 6.7% Dividend Increase
  • The closing of the sale of the assets of the US parts distribution is expected to occur by end of the second quarter
  • President and CEO Richard G. Roy to Retire on July 31, 2015
  • COO Henry Buckley to be Appointed President and CEO Effective August 1, 2015

Unless otherwise indicated in this press release, all amounts are expressed in US dollars.

Boucherville (Québec), April 30, 2015 − Uni-Select Inc. (TSX: UNS), a major automotive aftermarket product distributor with activities across North America, reported its results for the first quarter ended March 31, 2015.

“The first quarter was a time of transition for the Corporation. We started 2015 with the confidence that our new sales and banner programs would enable us to attract new customers and lead to positive topline growth”, said Richard G. Roy, President and Chief Executive Officer of Uni-Select. “The somewhat lower growth achieved during the quarter was mainly due to the timing of delayed seasonal maintenance on vehicle impacting customer sales in many of our markets compared to 2014”.

"As for the agreement to sell our US parts distribution activities announced on February 9, 2015, we expect the closing of the transaction to occur by the end of the first semester as disclosed. We now turn to the development of our businesses, Uni-Select Canada and FinishMaster, where we are leaders. Our intention is to strengthen these leadership positions. The same key attributes which have earned us our recognition as the partner of choice in the industry, among which flexibility, superior customer service, sought-after banner programs, efficient logistics and complete product assortment will be the foundation of our future success,” added Mr. Roy.

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


Adjusted EBITDA19,49120,836
Adjusted EBITDA margin4.7%5.0%
Restructuring charges and others5,026-
Impairment and transaction charges related to assets held for sale134,002-
Net earnings (loss)(82,282)8,388
Adjusted earnings10,0339,723
Earnings (loss) per share(3.88)0.39
Adjusted earnings per share0.470.46
Adjusted earnings per share (C$)C$0.58C$0.51


(All percentage increases and decreases represent year-over-year changes for the first quarter of 2015 compared to the first quarter of 2014, unless otherwise noted.)

Uni-Select recorded a slight decrease in sales of 0.3% to $412 million in the first quarter of 2015, resulting from a substantially weaker Canadian dollar, compensated only in part by sales from business acquisitions and organic growth. In the first quarter, consolidated organic sales grew by 0.5%, driven by the recruitment of new customers in the paint and related products segment and partly offset by a temporary decline in the automotive products segment.

For the first quarter, the Corporation reported a negative EBITDA of $122 million resulting from impairment and transaction charges of $134 million in connection with the sale of the net assets of the US automotive parts distribution business activities, in addition to restructuring charges of $5 million to rightsize the corporate operations. Adjusted EBITDA reached $19.5 million, down 6.4% from the $20.8 million recorded in the first quarter of 2014, mainly resulting from unfavorable customer mix, and timing of internal resources utilization for which benefits will arise in future quarters. These factors were partly offset by the impacts of business acquisitions, additional profits from inventory purchased before expected price increase and lower operating expenses.

Adjusted earnings before tax were up 24.9% due to the lower depreciation, amortization and financial costs.

Earnings per share were negative $3.88 due to the impairment and transaction charges of $90 million. After excluding these non-recurrent items, adjusted earnings per share were $0.47 compared to $0.46 last year.

As indicated above, the Corporation’s results are presented in US dollars. The declining Canadian dollar impacted sales by $11 million and adjusted earnings per share by $0.01. Once converted to Canadian dollars, adjusted earnings per share reached C$0.58 for the first quarter, up 13.7% compared to C$0.51 in 2014.

On February 1, 2015, the Corporation redeemed for cancellation all of its outstanding 5.9% convertible debentures for an aggregate principal amount of C$52 million.

Moreover, during the first quarter, Uni-Select inaugurated its new, state-of-the-art, national distribution centre for the Canadian market. At 100,000 square feet and featuring an inventory of over $14 million, the new facility dramatically expands the Corporation's reach, the availability of its products and the quality of the customer experience it offers.


President and CEO Richard G. Roy will be retiring on July 31, 2015 after a bright career of more than 17 years at Uni-Select, including over 7 years as the Corporation’s CEO. The Board of Directors announced that Uni-Select’s current COO, Henry Buckley, will take over the role of CEO effective August 1, 2015.

“The Corporation being in great position, I have decided to retire after spending some 17 years with this fantastic organization. I trust that Henry Buckley and the senior leadership team will guide Uni-Select to new heights. I wish them all the best. They have my full support and I am absolutely convinced that an exciting future awaits Uni-Select," added Mr. Roy.


The Uni-Select Board of Directors declared a dividend of C$0.16 per share payable on July 21, 2015 to shareholders of record on June 30, 2015, a 6.7% increase over the previous quarter. This dividend is an eligible dividend for tax purposes.

Uni-Select will host a conference call to discuss its 2015 first quarter results on April 30, 2015 at 4 PM (EDT). To join the conference, dial 1 866 696-5910 followed by 2686549.

A replay of the conference call will be available until 11:59 PM on May 11, 2015. To access the replay, dial 1 800 408-3053 followed by 8085234.


Uni-Select will hold its 2014 Annual General Meeting of Shareholders on Wednesday, April 30, 2015 at 1:30 PM (EDT) at the Sandman Hôtel Montréal-Longueuil, Champlain Room, 999 De Serigny Street, Longueuil QC J4K 2T1. To access the Meeting’s webcast, please visit


Once the sale of substantially all the assets of Uni‐Select USA, Inc. and Beck/Arnley Worldparts, Inc. announced on February 9, 2015, will be completed, Uni-Select will be the leading independent automotive paint distributor in the United States through FinishMaster, and a leader in the Canadian distribution of automotive products. Over 2,300 team members spread across 13 distribution centres and 187 corporate stores are dedicated to offering advanced solutions and first-rate service to customers in order for them to benefit from a positively superior experience. Uni-Select’s strong network and proficient programs contribute to the success of countless auto service shops and collision centres in North America as well as more than 1,155 stores owned by independent wholesalers in Canada. Its Canadian banner programs made up of Auto Parts Plus®, Auto-Plus®, Bumper to Bumper®, Auto-Select™, Uni-Pro®, SAX, Color Plus® and Carrossier ProColor® form a group of over 3,900 shops and stores. Uni-Select is headquartered in Boucherville and its shares are traded on the Toronto Stock Exchange (TSX) under the symbol UNS.


The information provided in this press release includes some forward-looking information, which includes certain risks and uncertainties, which may cause the final results to be significantly different from those listed or implied within this news release. Such risks and uncertainties may include, for example, the impact of the transaction involving the sale of the US automotive parts distribution activities on the business of Uni-Select as a whole and certain strategic benefits expected to result from the transaction. In addition, the completion and timing of the transaction are subject to closing conditions, termination rights and other risks and uncertainties. Accordingly, there can be no assurance that the transaction will occur within the timeline contemplated in this news release. For additional information with respect to risks and uncertainties, refer to the Annual Report filed by Uni-Select with the Canadian securities commissions. 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.


The Management Report, the unaudited interim financial statements and the accompanying notes for the First Quarter of 2015 are available in the “Investors” section on the Corporation’s website at as well as on SEDAR at 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.

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Karine Vachon | Manager, Investor Relations and Communication
Tel. 450 641.6972 |


The information included in this press release contains certain measures that are consistent 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.

Organic growth – This measure consists of quantifying the increase in pro forma 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. 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, equity income 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 before tax, adjusted earnings and adjusted earnings per share – Management uses adjusted EBITDA, adjusted earnings before tax, adjusted earnings and adjusted earnings per share to assess EBITDA, adjusted earnings before tax, 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 are more representative of the Corporation’s operational performance and more appropriate in providing additional information. These adjustments include, among other things, restructuring and other charges, impairment and transaction charges related to assets held for sale, the non‐capitalizable costs related to the development and implementation of the ERP system and costs related to the closure and disposal of stores. The exclusion of these items does not indicate that they are non‐recurring.

Adjusted EBITDA margin – The adjusted EBITDA margin is a percentage corresponding to the ratio of adjusted EBITDA to sales.


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

Net earnings (loss)(82,282)8,388
Income tax expense (recovery)(46,111)79
Equity income(125)(501)
Depreciation and amortization3,9827,596
Finance costs, net2,2713,040
Restructuring and other charges5,026-
Impairment and transaction charges related to assets held for sale134,002-
Expenses related to the development and deployment of the enterprise resource planning system (ERP) (1)-414
Expenses related to the network optimization and to the closure and disposal of stores (2)2,7281,820
Adjusted EBITDA19,49120,836 (6.4)
Adjusted EBITDA margin4.7%5.0%

(1) Include costs mainly related to data conversion, employee training and deployment to various sites.
(2) Consist primarily of handling and freight expenses required to relocate inventory.

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

Net earnings (loss) attributable to shareholders, as reported(82,282)8,388
Restructuring and other charges, net of taxes3,668-
Impairment and transaction charges related to assets held for sale, net of taxes86,676-
Expenses related to the development and deployment of the ERP system, net of taxes-247
Expenses related to the network optimization and to the closure and disposal of stores, net of taxes1,9711,088
Adjusted net earnings10,0339,723 3.2
Net earnings (loss) per share attributable to shareholders, as reported(3.88)0.39
Restructuring and other charges, net of taxes0.16-
Impairment and transaction charges related to assets held for sale, net of taxes4.10-
Expenses related to the development and deployment of the ERP system, net of taxes-0.02
Expenses related to the network optimization and to the closure and disposal of stores, net of taxes0.090.05
Adjusted earnings per share0.470.47

The effect of the declining Canadian dollar was $0.01 on earnings per share for the quarter compared to the same period of 2014.