Automotive aftermarket distribution network Uni-Select Inc. highlighted challenges in its Q4 financial results, despite sales growth of 42.6% and solid Canadian performance.
“Our fourth quarter performance was mixed,” said Henry Buckley, president and chief executive officer of Uni-Select.. “While our consolidated sales and adjusted EBITDA increased by 42.6% and 10.4% respectively, mainly driven by acquisitions, we continued to work through some challenges at FinishMaster US. This segment was impacted by the residual effect of the product line changeover, severance related to the 20/20 initiative and other elements. Conversely, our Canadian business performed well with continued sales and margin improvement, driven by solid organic sales growth and the contribution of recent acquisitions. Finally, as expected, our newly-acquired UK operations had a seasonally slow quarter, however, delivered robust organic sales growth and also implemented the 20/20 initiative as planned.,”
• Sales up 42.6% to $415.0 million in Q4 and up 21.0% to $1,448.3 million for 2017 due to the Parts Alliance and other acquisitions combined with organic sales growth in the Canadian and UK operations;
• EBITDA (1) of $25.9 million in Q4 and $110.8 million for 2017; Adjusted EBITDA (1) of $28.0 million up 10.4% in Q4 and of $117.5 million up 9.2% for 2017;
• Network of 447 locations, up 188 in 2017 from 10 business acquisitions and 6 greenfields; and
• Free cash flow (1) of $16.9 million in Q4 and $95.7 million for 2017.
Unless otherwise indicated in this press release, all amounts are expressed in thousands of US dollars, except per share amounts and percentages.
“We look forward to 2018 with optimism. We hold strong leadership positions in our three geographic markets, which offer significant opportunities for profitable growth and value creation for our shareholders. Our priority for 2018 is to drive organic sales growth, progressively throughout the year, adding select acquisitions while realizing the benefits of our 20/20 initiative and continuing our disciplined approach to expense management, driving improved operating results.” added Buckley.
For more information, visit www.uniselect.com