Uni-Select update on COVID-19 measures

by | Apr 20, 2020 | 0 comments

Uni-Select Inc. has provided an update regarding previously implemented and current measures in response to the COVID-19 global pandemic and its affect on the automotive aftermarket.

“The COVID-19 pandemic has created unprecedented challenges for the entire automotive aftermarket. While Uni-Select and its customers continue to provide essential services where appropriate and permitted, demand has decreased and is expected to be under pressure in the near term. Uni-Select will continue to optimize its operations accordingly,” reads a statement from Uni-Select.

“As the uncertainty regarding the full extent and duration of the pandemic continues, Uni-Select’s Board of Directors and its executive management team is focusing on a cash conservation plan aimed at ensuring maximum available liquidity and financial flexibility until the crisis abates and market conditions stabilize.”

Uni-Select implemented a number of measures starting in early March including but not limited to:

  • Ensuring that all government-issued regulations applicable to the jurisdictions in which Uni-Select operates are followed;
  • Operational changes such as curb-side pick ups where possible, order intake procedures and deliveries that minimize contact and work-from-home policies wherever possible;
  • Reduced work hours, reduced number of open store locations, 20% salary cuts for executive management and 25% for the Board of Directors,
  • Furlough of approximately 50% of its employees across all three business units (Uni-Select Canadian Automotive Group, FinishMaster U.S., and The Parts Alliance, U.K.);
  • Working with customers and suppliers to find ways to accommodate and meet respective needs.
  • Suspend all future dividend payments for the time being with the exception of the dividend declared on February 19, 2020 that will be paid on April 21, 2020 to shareholders of record as of March 31, 2020.

“These important and difficult decisions were made by our team in a quick and nimble fashion, all within a very volatile environment, but always with the best interest of the Corporation as a whole in mind, recognizing the sacrifices and hardships being imposed on so many,” said Brent Windom, President and Chief Executive Officer of Uni-Select. “These decisions are being made to ensure that the Corporation comes out of the COVID-19 crisis strong and ready to continue its plans for growth, overall performance improvement and value creation for its shareholders. We are particularly grateful to all those working on the front lines of defense for the security and well-being of us all. To that end, we are pleased to have donated thousands of much-needed N95 respirators to various governmental authorities over the past few days in the hope that they will offer some reprieve for healthcare professionals.”

Uni-Select will provide a more complete update regarding the operational and financial impacts of COVID‑19 during its first quarter fiscal 2020 earnings call, to be held on May 14, 2020.

Annual and Special Meeting of Shareholders

In the context of COVID-19, in order to protect the health of all participants, Uni-Select will be holding its annual and special meeting of shareholders scheduled for May 14, 2020 in a virtual-only format which will be conducted via live webcast at https://web.lumiagm.com/144757179.

For more information on the meeting and how to participate, please refer to Uni-Select’s management information circular for the meeting which is filed on SEDAR. Further details on how to participate and vote at the meeting will be provided on the Investors page of our website (uniselect.com) in the coming days.

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