BOUCHERVILLE, Quebec – Uni-Select Inc. has improved profitability for the third quarter ended Sept. 30, 2014.
Overall sales grew by 0.2 percent or 1.3 percent organically. EBITDA grew 3.7 percent, while net earnings increased by 3.9 percent in the third quarter as a result of savings derived from the corporation’s Action Plan. Notwithstanding expenses related to the network optimization, adjusted EBITDA grew by 4.5 percent this quarter, resulting in an adjusted EBITDA margin of 6.8 percent.
"I am overall pleased by our third quarter results and the stronger profitability margins we have systematically been recording quarter after quarter since the implementation of our Action Plan. Through our healthier distribution network, we are now able to offer an increasingly more flexible, sustainable and customer-centric solutions," said Richard Roy, president and CEO of Uni-Select.
"The Uni-Select team remains committed toward our Action Plan, which is mainly completed and will be finalized during the first half of 2015. We now turn to the quarters ahead with the objective of converting aggressive new sales initiatives, higher fill rates and optimal product assortment into a renewed sales momentum across the entire organization," added Roy.
Uni-Select recorded an overall sales increase of 0.2 percent to $465 million in the third quarter of 2014. Organic growth of 1.3 percent and revenue derived from recent acquisitions were largely offset by the impact of the declining Canadian dollar and sales lost from store closures under the corporation’s Action Plan. Sales for the U.S. operations reached $340 million, up 1.6 percent over last year, with an organic growth of 1.3 percent.
Canadian operations reported $126 million in sales in the same period, down 3.5 percent over 2013 mainly due to the impact of a lower Canadian dollar, partially compensated by a 1.2 percent organic growth.
The corporation’s results are presented in U.S. dollars. Once converted to Canadian dollars, adjusted earnings per share reached 80 cents for the third quarter, up a strong 9.6 percent compared to 73 cents in 2013.
Over the course of the third quarter, net debt decreased by $38 million, mainly due to an increase in cash from operations generated by additional earnings and improved working capital.
Subsequently to the end of the third quarter, Uni-Select amended the terms of its existing credit facility and extended its maturity to June 30, 2018.
Nine-Month Period Results
Uni-Select recorded an overall 0.4 percent decline in sales for the first nine months of 2014 to $1,357 million. Sales lost from store closures, combined with the declining Canadian dollar more than offset the combined favorable impact of the 2.2 percent organic growth and additional revenue derived from recent acquisitions.
Sales of the U.S. operations reached $993 million, up 0.4 percent compared to last year, with a 1.4 percent organic growth. Canadian operations recorded $364 million in sales in the same period, down 2.5 percent over 2013. Canadian organic growth reached 4.2 percent.
For the nine-month period ended Sept. 30, 2014 adjusted earnings per share converted to Canadian dollars amount to $2.16 compared to $1.79 in 2013, a robust 20.7 percent increase.
