Uni-Select Inc., a leader in the distribution of automotive refinish and industrial paint and related products across North America, as well as in the automotive aftermarket parts business in Canada, has reported its financial results for the second quarter, ended June 30, 2016.
“We made good progress in Q2 on the earnings and acquisition fronts. The organic growth for the quarter was less than anticipated, but the outlook remains positive for the balance of the year,” said Henry Buckley, president and CEO of Uni-Select. “Our teams are doing a terrific job utilizing our standardized processes to successfully integrate our acquisitions and drive sustainable growth to achieve our goals. We welcome all our new team members to the Uni-Select family.”
Consolidated sales for the second quarter were $323.8 million, a 20.7 percent decrease, mainly due to the sale of the net assets in 2015. Excluding sales from the net assets sold, consolidated sales grew 14.6 percent compared to the same period last year. Additional sales from recent business acquisitions combined with the effect of an additional billing day in Canada, and organic growth exceeded the impact of the declining Canadian dollar on its conversion to the U.S. dollar, which alone penalized sales by $5.7 million or 2 percent.
Net earnings were $16.8 million compared to $12.4 million and to adjusted earnings of $20 million last year. Earnings per share and adjusted earnings per share were 40 cents compared to 29 cents and 47 cents, respectively, in 2015.
Segment Results
The Paint and related products segment recorded sales of $196.5 million, up 26.5 percent from 2015, or up 2.1 percent organically, primarily from existing customer growth coupled with new customer recruitment.
Sales for the Automotive products segment were $127.3 million, from $252.9 million in the prior year. Excluding the impact on sales related to the net assets sold, sales increased by 0.2 percent compared to 2015.
Organic growth and sales from recent business acquisitions combined with the effect of an additional billing day exceeded the weaker Canadian dollar which had an impact, on conversion to the U.S. dollar, of $5.7 million on sales or 4.5 percent. Segment organic sales decreased by 2.3 percent in the second quarter due to performance mainly from the difficult economic conditions prevailing in the oil and gas industry in the Prairies.
Consolidated sales for the six-month period were $587.8 million, a 28.3 percent decrease, mainly due to the sale of the net assets in 2015. Excluding sales from the net assets sold, consolidated sales grew 12.9 percent compared to the same period last year. Sales from recent business acquisitions combined with organic growth, and the effect of an additional billing day exceeded the impact of the declining Canadian dollar on its conversion to the U.S. dollar, which alone penalized sales by $14.3 million or 2.7 percent.
On an organic basis, consolidated sales grew by 1.5 percent, supported by the net customer recruitment and existing customer growth in the Paint and related products segment, which was offset by the Automotive products segment performance mainly explained by the ongoing difficult economic conditions prevailing in the Prairies.
Net earnings grew to $28.3 million from a net loss of $69.9 million last year, while adjusted earnings decreased by 5.7 percent. Earnings per share and adjusted earnings per share both were 66 cents compared to a loss per share of $1.64 and adjusted earnings per share of 70 cents in 2015.
The Paint and related products segment recorded sales of $369.9 million, up 22 percent from 2015, or up 3.1 percent organically, namely as a result of the existing customer growth and net customer recruitment.
Sales for the Automotive products segment were $217.9 million, from $516.8 million in the prior year. Excluding the impact on sales related to the net assets sold, sales increased by 0.2 percent compared to 2015.
Sales from recent business acquisitions combined with the effect of an additional billing day exceeded the weaker Canadian dollar which had an impact, on its conversion to the U.S. dollar, of $14.3 million on sales or 6.6 percent. Segment organic sales decreased by 0.7 percent in the six-month period due to performance mainly explained by the ongoing difficult economic conditions prevailing in the oil and gas industry in the Prairies.
