Uni-Select Inc. has reported strong financial results for the first quarter, ended March 31, 2016.
“I am extremely pleased with our team’s performance in the first quarter and the solid start to the year,” said Henry Buckley, president and CEO of Uni-Select. “Both FinishMaster and the Canadian Automotive Group achieved positive organic growth and improved profitability. Our teams continue to be focused on a balanced growth strategy; organic and select acquisitive growth. Despite the impact of the declining Canadian dollar and the economic slowdown in the Prairies, we enter the second quarter with solid momentum. We continue to be highly focused on profitable growth and the integration of our acquisitions.”
The 2016 results in dollars vary compared to last year’s figures, since the first quarter of 2015 included three months of operations from the net assets of Uni-Select USA, Inc. and Beck/Arnley Worldparts Inc., sold on June 1, 2015.
Consolidated sales for the first quarter reached $264 million, a 35.9 percent decrease mainly due to the sale of the net assets in 2015. Excluding sales from the net assets sold, consolidated sales grew 10.8 percent compared to the same period last year. Additional sales from recent business acquisitions and organic growth exceeded the impact of the declining Canadian dollar, which alone penalized sales by $8.5 million, or 3.6 percent.
Uni-Select said that, on an organic basis, consolidated sales grew by 3.2 percent, fueled primarily by the recruitment of new customers in the paint and related products segment, combined with the results of the development of a customer-centric strategy in the automotive products segment.
Net earnings grew to $11.5 million from a net loss of $82.3 million last year, while adjusted earnings increased by 14.5 percent. Earnings per share and adjusted earnings per share both reached 53 cents compared to a loss per share of $3.88 and adjusted earnings per share of 47 cents in 2015.
2-for-1 Stock Split
The board of directors of Uni-Select on April 27 approved a 2-for-1 stock split of its common shares to increase the number of shares outstanding and enhance affordability to investors. This stock split is subject to obtaining the final approval of the Toronto Stock Exchange (TSX). T he record date of the stock split will be Friday, May 6, 2016 at 5 p.m., and the payment date will be Wednesday, May 11, 2016, at which time the corporation’s transfer agent, Computershare Trust Co. of Canada, will promptly send shareholders of record a physical share certificate representing one additional common share for each common share held at such record date.
The common shares will commence trading on an “ex-distribution” basis on Thursday, May 12, 2016, as of which date purchases Uni-Select’s common shares will no longer have an attaching entitlement. The due bill redemption is estimated to be Tuesday, May 17, 2016.
