Uni-Select Inc. - Net Earnings Growth of 7.1% for Q2 1999
13 August 1999
Uni-Select Inc. - Net Earnings Growth of 7.1 Percent for the Second Quarter 1999
BOUCHERVILLE, QUEBEC--Aug. 12, 1999--UNI-SELECT (ME:UNS.) (TSE:UNS.) For the second quarter ended June 30, 1999, Uni-Select's sales totalled $147,049,000 compared to $124,810,000 in 1998, an increase of 17.8 percent. Net earnings grew by 7.1 percent to reach $4,443,000 or $0.24 per share, compared to $4,149,000 or $0.23 per share for the second quarter of last year.For the period of six months ended June 30, 1999, Uni-Select's net earnings increased by 9.0 percent to $6,619,000 or $0.36 per share, compared to $6,072,000 or $0.33 per share for the comparable period of 1998. Sales totalled $266,522,000 compared to $225,682,000 for the first semester of the previous year, an increase of 18.1 percent.
Year-to-date sales for the Canadian Automotive Group, specialised in the sale of light motor vehicle replacement parts, increased by 10.2 percent. The growth of the Uni-Select network originates partly from the acquisitions completed during the last quarter of 1998 and partly from organic growth. Uni-Select merchant members added 12 points of sales to our organisation.
The USA Automotive Group issued from the Uni-Select USA joint venture in September 1998, experienced a growth of 11.8 percent during the first half of 1999, compared to the same period in 1998 which preceded Uni-Select's participation. During this period, Uni-Select USA added 18 points of sales. This strong growth validates our american development strategy set in place ten months ago.
Year-to-date sales of the Heavy Duty Group, specialised in the replacement parts of heavy-duty trucks, trailers and buses, decreased by 8.2 percent compared to the same period in 1998. Please note that sales of the Heavy Duty Group had increased by more than 50 percent during the first half of 1998, following the acquisition of the Manac division of the Canam Manac Group. The Heavy Duty Group is currently pursuing the reorganisation of its operations started during the first quarter of 1999. We are confident to see the results of these efforts before the end of fiscal year.
The Management of Uni-Select is confident that sustained growth will prevail in 1999. We believe that our growth will be superior to growth of the industry in 1999 due to our organic growth supported by marketing programs, the US development strategy, as well as strict controls over operating expenses.
Uni-Select will pay, on October 20, 1999, a quarterly dividend of $0.05 per share to shareholders of record as of September 30, 1999.
UNI-SELECT INC.
CONSOLIDATED EARNINGS
Six month period ended June 30, 1999
(unaudited) ($000)
2nd quarter First six months
1999 1998 1999 1998
$ $ $ $
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Sales 147,049 124,810 266,522 225,682
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Cost of goods
sold and
operating
expenses
(excluding
the following
items) 138,100 116,936 252,451 213,560
Interest on
current
loans 306 94 594 245
Interest on
long-term
debt 56 6 112 26
Interest on
merchant-members'
deposits in
guarantee
funds 89 43 178 85
Interest
Income
Joint
Ventures - (24) - (47)
Merchant
Members (64) (78) (132) (160)
Depreciation
of fixed
assets 795 547 1,592 1,202
Amortization
of goodwill 150 126 298 251
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139,432 117,650 255,093 215,161
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Earnings before
income taxes 7,617 7,160 11,429 10,521
Income taxes:
Current 3,174 3,011 4,810 4,449
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Net earnings 4,443 4,149 6,619 6,072
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Net earnings per
common share 0.24 0.23(1) 0.36 0.33(1)
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Diluted net
earnings per
common share 0.23 0.22(1) 0.35 0.32(1)
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Dividends paid
on common shares 0.050 0,043(1) 0.10 0.085(1)
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Weighted number
of issued and
outstanding
common shares 18,480,707 18,470,236
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(1) Adjusted to show the June 1st, 1999 subdivision
CONSOLIDATED CHANGES
IN CASH RESOURCES
Six month period ended June 30, 1999
(unaudited) ($000)
1999 1998(i)
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OPERATIONS
Net earnings 6,619 6,072
Non-cash items
Depreciation and amortization 1,890 1,449
Deferred income tax (18) -
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8,491 7,521
Changes in working capital items 4,341 (184)
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12,832 7,337
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FINANCING
Issuance (Repurchase) of
common shares (658) 269
Repayment of long-term debt (418) (303)
Evolution of bank indebtedness (6,924) (3,580)
Merchant members' deposits
in guarantee funds 384 204
Dividends (1,756) (1,428)
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(9,372) (4,838)
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INVESTMENT
Business acquisitions (704) (515)
Advances to merchant members (1,076) 1,330
Additions to fixed assets (1,351) (1,630)
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(3,131) (815)
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Increase (decrease) in cash 329 1,684
Cumulative translation
Adjustments (329) -
Cash (bank indebtedness)
beginning of year - -
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Cash (bank indebtedness)
end of year - 1,684
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(i) Previous year figures were adjusted for comparison purposes.
UNI-SELECT INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
Second quarter results
As at June 30, 1999
(unaudited) ($000) 1999 1998
$ $
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ASSETS
Current assets
Cash - 1,684
Accounts Receivable 100,156 78,450
Tax benefit - 308
Inventory 92,705 72,309
Prepaid Expenses 1,917 1,828
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194,778 154,579
Investments 3,989 4,950
Fixed Assets 18,489 13,274
Goodwill 8,794 7,407
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226,050 180,210
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LIABILITIES
Current Liabilities
Bank indebtedness 13,831 7,311
Accounts payable
and accrued liabilities 102,083 79,488
Balances of purchase price 401 412
Income taxes payable (1,959) (1,318)
Dividends payable 925 786
Instalments due within
one year 503 159
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115,784 86,838
Deferred government grant 304 -
Long-term debt 2,249 277
Merchant members' deposits
in guarantee funds 6,955 5,603
Deferred income taxes 506 224
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125,798 92,942
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SHAREHOLDERS' EQUITY
Capital stock 13,412 13,137
Cumulative translation
Adjustments (230) -
Retained earnings 87,070 74,131
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100,252 87,268
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226,050 180,210
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