Uni-Select Inc. has reported increased adjusted earnings for the second quarter ended June 30, 2015.
Over the course of the second quarter, the corporation completed the sale of substantially all the net assets of Uni-Select USA Inc. and Beck/Arnley Worldparts Inc. to affiliates of Icahn Enterprises L.P. for net cash proceeds of $324 million. The proceeds of the transaction were used by Uni-Select to repay its outstanding debt and to settle related transaction costs. Accordingly, the second quarter and six-month period results include respectively two and five months of operations from the net assets sold.
“I am very pleased by our solid performance in the second quarter and delighted by the balanced contribution of both our automotive products and paint and related products segments to our results. I am particularly delighted that we are starting to see Uni-Select emerge as a substantially more profitable operation featuring a very strong balance sheet,” said Richard Roy, president and CEO of Uni-Select. “As I prepare to leave for retirement, I could not be prouder of what we have achieved as a team and I am confident that an exciting future awaits Uni-Select under the leadership of Henry Buckley as president and CEO, effective August 1, 2015.”
The sales decrease of 14.7 percent in the second quarter, compared to last year, is due to the sale of net assets of Uni‐Select USA Inc. and Beck/Arnley Worldparts Inc. and by the declining Canadian dollar, while partly compensated by additional sales from recent acquisitions. On an organic basis, consolidated sales grew 3.7 percent, driven by the recruitment of new customers in the paint and related products segment combined with the implementation of a customer centric strategy in the automotive products segment.
Net earnings declined to $12.4 million, from $15.5 million last year, mainly as a result of impairment and transaction charges related to the sale of net assets.
For the first six-month period of 2015, overall sales decreased by 8 percent to $820 million, a performance explained by the same factors as for the second quarter. On an organic basis, sales grew 3 percent or $15.6 million in the first half of the year.
Uni-Select recorded a net loss of $69.9 million in the first half of the year while adjusted earnings grew 14.5 percent to $30 million ($1.41 on a per share basis) from $26.2 million ($1.23 on a per share basis) for the corresponding period last year.