Uni-Select reports growth in sales and EBITDA for its Q4 and full year 2017

  • 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.

Boucherville (Québec), February 20, 2018 – Uni-Select Inc. (TSX:UNS) today reported its financial results for the fourth quarter and the year ended December 31, 2017.

“Our fourth quarter performance was mixed. 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 (1) 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,” commented Henry Buckley, President and Chief Executive Officer of Uni-Select.

“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 Henry Buckley.

Boucherville (Québec), February 20, 2018 – Uni-Select Inc. (TSX:UNS) today reported its financial results for the fourth quarter and the year ended December 31, 2017.

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The Parts Alliance announces two new branch openings

Uni-Select Inc. (“Uni-Select”, TSX: UNS), announced today that The Parts Alliance, one of its subsidiaries, has opened two new branches in the United Kingdom.

The Parts Alliance has opened two new branches in February. This follows two further branch additions towards the end of 2017 with Midsomer Norton and Southampton in Southern England.

Croydon has opened under the SCMF brand and extends the ability to serve customers in the South East and the greater London area. To extend the Parts Alliance reach in the North West of the UK, where there is a sizeable and sweet spot car parc, the PA opened Newcastle under their SAS brand.

These new store openings represent ongoing investment from The Parts Alliance and an ongoing commitment to endorse and develop their trusted local motor factor brands giving local service combined with national strength. These new locations will enable improved service for both independent garages and the group’s growing national accounts portfolio.

“We’re delighted to continue our branch expansion to establish a true national footprint with a combination of company owned stores and a commitment to members and service partners,” said Peter Sephton, Parts Alliance CEO. “We welcome all our new team members to our culture of systemised entrepreneurship and look forward to giving our customers increased choice and better service driven by our people culture and technology platform”.

“The opening of two new locations is an opportunity to expand the group’s presence nationally and aligns with our strategic plan to grow in key markets,” added Henry Buckley, President and Chief Executive Officer of Uni-Select. “This continues our commitment to have the best customer coverage in the United Kingdom through both owned stores and members”.

The national car parts distributor says new branch openings, coupled with select acquisitions and new Parts Alliance members, are key opportunities for us to expand our UK coverage.

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Uni-Select reports its third quarter results with solid sales growth by Canadian Automotive Group

  • Sales of $395.8 million, up 24.3%; organic growth(1) of 7.7% in Canada;
  • Gross margin of $128.5 million, up 31.4% due to The Parts Alliance acquisition;
  • EBITDA(1) of $32.2 million. Adjusted EBITDA(1) of $33.9 million, up 10.0% from $30.8 million last year;
  • EPS and adjusted EPS of $0.26 and $0.36 respectively compared to $0.41 last year;
  • Closed the acquisition of The Parts Alliance(2) in the UK providing a third growth platform; and
  • Two additional acquisitions in the quarter, BBC Superfactors in the UK adding 7 locations, and
  • Dash Distributors in Canada adding 4 locations.

Boucherville (Québec), November 8, 2017 – Uni-Select Inc. (TSX:UNS) today reported its financial results for the third quarter ended September 30, 2017.

“We are very pleased to report our third quarter results which include seven weeks of The Parts Alliance (“TPA”) business in the UK acquired in August. TPA results do not represent a full quarter as we are only reporting since its acquisition on August 7, 2017. We are excited by the opportunities ahead. TPA management is driving a number of profitable growth initiatives and has already demonstrated it with their first acquisition in September, adding seven locations to its network. The Canadian business reported another strong quarter, with organic sales growth of 7.7% while improving its EBITDA. FinishMaster US is focusing on initiatives underway to overcome headwinds from the product line changeover, but also from the two hurricanes that impacted important markets, Texas and Florida, during the quarter,” said Henry Buckley, President and Chief Executive Officer of Uni-Select. “While consolidated net earnings are below our expectations, the underlying industry fundamentals are positive, and we have both profitable sales growth initiatives and productivity improvement initiatives underway to maximize shareholder value,” added Henry Buckley.

Boucherville (Québec), November 8, 2017 – Uni-Select Inc. (TSX:UNS) today reported its financial results for the third quarter ended September 30, 2017.

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Trade comes out to support The Parts Alliance’s South West Show

Trade comes out to support The Parts Alliance’s South West Show

Fuzz Townshed (L), Paul Dineen (2nd L), Matt Neale (R) and a lucky winner

The Parts Alliance’s South West Garage and Workshop Show has returned for 2017 even ‘bigger and better’.

Storm-like conditions failed to deter well over 500 garage owners and mechanics from visiting Sandy Park, home to English Premiership side Exeter Chiefs, on the evening of Thursday 19th October. The event hosted garage customers invited by the nine Parts Alliance branches in Somerset, Devon and Cornwall – including the recently opened Midsomer Norton Branch

Some 57 supplier stands were situated across two conference rooms. They represented many of the leading OE parts brands distributed by The Parts Alliance’s members throughout the UK.

The Angry Jester team showcased the latest ‘problem solving’ specialist tools available exclusively from The Parts Alliance. They did brisk business selling throughout the event, whilst also fund-raising for Cancer Research.

The CEO Peter Sephton, his directors and senior management of The Parts Alliance were also present to welcome customers, suppliers and support staff. Henry Buckley President and CEO of Uni-Select Inc. and his executive team also participated in meeting guests.

The ‘special guest’ appearances from three-time BTCC Champion Matt Neal and Car SOS TV presenter Fuzz Townshend proved particularly popular. A hushed crowd listened intently as both enthusiastically participated in question and answer interviews.

“We were delighted to attract so many customers along in the middle of the working week,” said Paul Dineen, Regional Business Director for the South West and Head of Garage Programmes at The Parts Alliance. “It was a superb event and everyone was just hugely positive throughout.”

“Our thanks go to all the staff team, the supporting suppliers who really pulled out all the stops to make their stands engaging and of course our many garage customers who came along and supported in droves.”

The Parts Alliance say the event built upon 2016’s debut show to attract more suppliers and more visitors. Sales on the night were double last year’s levels too, with many more leads also being followed up by local branches in the days that followed.

The Parts Alliance promise plans are already in place to make the show bigger and better for 2018.

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Autumn 2017 Garage Essentials brings exciting new products

Garage Essentials - Autumn 2017The Parts Alliance has launched the autumn 2017 edition of Garage Essentials, with the 76 page glossy brochure featuring garage equipment and tooling from the biggest and best suppliers to the UK automotive aftermarket.

Dunlop ‘Star Buy’ packages include a 4 tonne two post lift for under £2,000 and a tyre bay package that offers a saving of £400 and is exclusive to The Parts Alliance.

Tyre equipment has proved particularly successful during a buoyant 2017, so there’s an increased range of options this issue, with solutions from Tecalemit, Bosch and Hofman. The all new EAE package combines a high spec automated tyre changer with assist arm and wheel balancer, for just £2,195 + VAT.

EAE has also launched a new range of OPTL / ATL four post lifts – again exclusive to The Parts Alliance – that can be surface or recess mounted. The three options have platforms ranging from 4.8m to 5.7m, costing between £7,995 and £8,795 + VAT. Better still, these lifts have inbuilt rear slip plates for four wheel alignment.

“We can supply and fit these DVSA approved lifts with a project design at a price point that just hasn’t been available to independent garages until now,” said John Wright, Head of Garage Equipment and Customer Development. “As customers can upgrade their two man MOT test bays to ATL for a lot less with us, we’re anticipating lots of interest, particularly as the wheel alignment capability adds further revenue potential.”

Cover offers feature SIP’s 500 kg heavy-duty hydraulic cylinder transmission jack which is selling fast at just £99.95 + VAT whilst stocks last. Angry Jester’s new Smoke Pro Turbo diagnostic leak detector boasts 10 litre per minute flow rate, quick coupling and 5 minute working cycle, for under £500 + VAT.

Angry Jester showcase their increased range on pages 50 to 53 whilst the Z M Heaters range of multi-oil and portable space heaters return ready for winter too.

Last but not least, Our Virtual Academy debut their online training solution. The manufacturer-level technical library includes interactive video content, proven to boost knowledge retention.

It’s available for the first time on a simple pay-as-you-go monthly subscription for up to four technicians, delivering a flexible on-demand solution for updating or refreshing vital technical expertise.

Printed copies of Garage Essentials are now available to garages from The Parts Alliance members Allparts Automotive, Bromsgrove Motor Factors, Car Parts & Accessories, CES (UK), GMF Motor Factors, GSF Car Parts, SAS Autoparts, SC Motor Factors and Waterloo Motor Trade.

Uni-Select Inc.: The Parts Alliance acquires BBC Superfactors, a leading distributor of auto parts in one of the UK’s prime metropolitan areas

Boucherville (Québec), September 15, 2017 –  Uni-Select Inc. (“Uni-Select”, TSX: UNS), announced today that The Parts Alliance, one of its subsidiaries, has completed the acquisition of the entire share capital of Blackburn Brakes Holding Limited owners of BBC Superfactors Ltd. (”BBC”), a leading distributor of vehicle parts in the UK’s Lancashire market.

In business for over 30 years and an affiliated member of The Parts Alliance, BBC provides quality automotive products and excellent service through a network of 7 locations across the Lancashire area. Over 150 of BBC professionals ensure that more than 1,000 deliveries per day are made to commercial customers with approximately 97% of orders delivered within one hour.

“Combining the dedication of our loyal staff team with the expertise of The Parts Alliance has proved to be a winning formula for us over several years,” said Gary Shulman, Managing Director of BBC Superfactors. “We’re excited to now strengthen this relationship to ensure our business continues to thrive long into the future.”

“Since joining The Parts Alliance in December 2012, BBC have posted consistent double-digit annual sales growth and have invested to achieve industry-leading service levels. We are very pleased to welcome our BBC colleagues in the team,” stated Peter Sephton, President and CEO, European Automotive Group.

“This acquisition strengthens our position in the UK market and underlines The Part Alliance’s capability of driving growth both organically and through acquisitions,” added Henry Buckley, President and Chief Executive Officer of Uni-Select.

 

ABOUT UNI-SELECT

Uni-Select is a leader in the distribution of automotive refinish and industrial paint and related products in North America, as well as a leader in the automotive aftermarket parts business in Canada and in the UK.  Uni-Select is headquartered in Boucherville, Québec, Canada, and its shares are traded on the Toronto Stock Exchange (TSX) under the symbol UNS.

In Canada, Uni-Select supports over 16,000 automotive repair and collision repair shops through a growing national network of more than 1,100 independent customers and corporate stores, many of which operate under the Uni-Select BUMPER TO BUMPER®, AUTO PARTS PLUS® AND FINISHMASTER® store banner programs. It also supports over 3,900 shops and stores through its automotive repair/installer shop banners, as well as through its automotive refinish banners.

In the United States, Uni-Select, through its wholly-owned subsidiary FinishMaster, Inc., operates a national network of automotive refinish corporate stores under the FINISHMASTER banner which services a network of over 30,000 customers annually, of which it is the primary supplier to over 6,000 collision repair centre customers.

In the UK and Ireland, Uni-Select, through its wholly-owned subsidiary The Parts Alliance is a leading distributor of automotive parts supporting over 23,000 customer accounts with a network of close to 200 locations including 161 corporate stores.

 

FORWARD-LOOKING INFORMATION

The information provided in this press release may include some forward-looking information, which could include certain risks and uncertainties, which may cause the final results to be significantly different from those listed or implied within this news release. Such risks and uncertainties may include, for example, the impact of the transaction on the business of Uni‑Select as a whole and certain strategic benefits expected to result from the transaction. For additional information with respect to risks and uncertainties, refer to the Annual Report filed by Uni-Select with the Canadian securities commissions. The forward-looking information contained herein is made as of the date of this press release, and Uni‑Select does not undertake to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.

The Parts Alliance announce new ‘Best of Brakes’ promotion

The Parts Alliance has teamed up with Delphi for the second time in 2017 to run their new ‘Best of Brakes’ promotion.

‘Best of Brakes’ aims to build on the record-breaking success of spring’s ‘Dream Drive’ promotion which saw surging sales and six lucky garage winners taking memorable Route 66 road trips.

This time around there are six spectacular holidays to be won during September and October, to destinations throughout the world.

Garages buying from The Parts Alliance members Allparts, BBC Superfactors, BMS Superfactors, Bromsgrove Motor Factors, CES, CPA, Dingbro, GMF, SAS Autoparts, SC Motor Factors, Qualvecom and The Parts Alliance South West branches during September and October will receive a brake pad shaped scratch card with each set of Delphi brake pads.

The main prizes are action-packed two week holidays to Australia, Canada, Cuba, Italy, South Africa and Vietnam, including flights, transfers, hotel accommodation and where necessary, car hire.

“We’re delighted to be working with The Parts Alliance again on the ‘Best of Brakes’ promotion,” said Julian Goulding, UK Marketing Manager at Delphi. “The scale of the trading group gives us the perfect platform for communicating the benefits of Delphi’s braking solutions to UK garages.”

Delphi pads are manufactured using no less than 20 different friction formulations. Other premium technologies include heat absorbing underlayers, noise reducing chamfers and dampening shims as well as pressed steel back plates. The result is pads that not only meet OE standards but also closely match the performance characteristics of individual vehicles.

“The ‘Best of Brakes’ promotion brings 25,000 prizes for garages to win,” said The Parts Alliance’s Head of Marketing Simon Moore. “We’ve been able to build on the success of ‘Dream Drive’ as customers continue to really embrace Delphi’s braking programme which marries a trusted brand, a quality product range and competitive pricing.”

The ‘Best of Brakes’ prizes will include Delphi and The Parts Alliance branded beanie hats, snoods, drinks bottles, retro enamel mugs and tins of sweets to share.

Throughout the duration of the promotion, Delphi and The Parts Alliance will be touring garages too. In the meantime, garages can find out more by visiting www.bestofbrakes.com.

Uni-Select completes acquisition of The Parts Alliance, a leading and growing automotive aftermarket parts distributor in the United Kingdom

Boucherville (Québec), August 7, 2017 – Uni-Select Inc. (“Uni-Select” or “Corporation”; TSX:UNS) is pleased to announce that it has today completed the acquisition of 100% of the shares of PA Topco Limited doing business as The Parts Alliance (“Parts Alliance”), the second largest nationwide independent distributor of automotive aftermarket parts in the United Kingdom.

As previously announced, the transaction in the amount of £205.0 million was fully funded with debt from available credit facilities.

“We could not be more pleased to be adding The Parts Alliance to the Uni-Select family. This is an exciting new growth pillar for Uni-Select in the large and fragmented UK marketplace. The Parts Alliance is the UK’s second largest automotive aftermarket parts distributor with 161 locations and growing plus affiliated members, all serving local and national customers across the UK,” said Henry Buckley, President and Chief Executive Officer of Uni-Select. “We welcome all our new team members, customers and suppliers. The cultural fit is exceptional and the growth prospects are significant,’’ added Mr. Buckley.

“The Parts Alliance is very thrilled to now be part of Uni-Select. All of my colleagues in our organization, our suppliers, members and all other stakeholders see the opportunity for long term financial growth and stability, as well as personal growth as we join a team of like-minded individuals,” said Peter Sephton, President and Chief Executive Officer of The Parts Alliance.

The Corporation is also delighted to welcome Mr. Peter Sephton who is today joining Uni Select’s Executive Team as President and Chief Executive Officer of the European Automotive Group.

The transaction provides Uni-Select with an attractive point of entry into a new geographic market currently in consolidation with high growth and accretion potential and a third growth pillar to complement its segments, Canadian Automotive Group and FinishMaster US. With the addition of The Parts Alliance, Uni-Select now has a strong team of over 6,000 dedicated team members, spread across a network of 16 distribution centres and over 430 corporate stores located in North America, United Kingdom and Ireland.

ABOUT UNI-SELECT

Uni-Select is a leader in the distribution of automotive refinish and industrial paint and related products in North America, as well as a leader in the automotive aftermarket parts business in Canada. In Canada, Uni-Select supports over 16,000 automotive repair and collision repair shops through a growing national network of more than 1,100 independent customers and corporate stores, many of which operate under the Uni-Select BUMPER TO BUMPER®, AUTO PARTS PLUS® AND FINISHMASTER® store banner programs. It also supports over 3,900 shops and stores through its automotive repair/installer shop banners, as well as through its automotive refinish banners. In the United States, Uni-Select, through its wholly-owned subsidiary FinishMaster, Inc., operates a national network of automotive refinish corporate stores under the FINISHMASTER banner which services a network of over 30,000 customers annually, of which it is the primary supplier to over 6,000 collision repair centre customers. Uni-Select is headquartered in Boucherville, Québec, Canada, and its shares are traded on the Toronto Stock Exchange (TSX) under the symbol UNS.

ABOUT THE PARTS ALLIANCE

The Parts Alliance is one of the leading groups of automotive parts distributors throughout the United Kingdom and Ireland. The group has a network of close to 200 locations including 161 corporate stores and supports over 23,000 customer accounts.

FORWARD-LOOKING INFORMATION

The information provided in this press release may include some forward-looking information, which could include certain risks and uncertainties, which may cause the final results to be significantly different from those listed or implied within this news release. Such risks and uncertainties may include, for example, the impact of the transaction on the business of Uni Select as a whole and certain strategic benefits expected to result from the transaction. For additional information with respect to risks and uncertainties, refer to the Annual Report filed by Uni-Select with the Canadian securities commissions. The forward-looking information contained herein is made as of the date of this press release, and Uni-Select does not undertake to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.

Garage Essentials Summer 2017 available now

The summer 2017 edition of Garage Essentials, the industry leading tools and equipment brochure from The Parts Alliance, will shortly be landing with independent garage workshops.

Printed copies will be available from The Parts Alliance members Allparts Automotive, Bromsgrove Motor Factors, Car Parts & Accessories, CES (UK), GMF Motor Factors, GSF Car Parts, SAS Autoparts, SC Motor Factors and Waterloo Motor Trade.

Running to 76 product-packed pages, Summer’s Garage Essentials contains a wealth of tools and equipment solutions for garages investing to develop their business.

The cover features deals on Winntec’s high performance trolley jacks from SIP, the Diag Digit tablet diagnostics tool from Angry Jester and a European-made Dunlop air conditioning service machine for R134a available, selling for under £1,500 plus VAT including delivery whilst stocks last.

Amongst other highlights is a best-selling EAE electro hydraulic two post 4T lift at only £1,895 + VAT with strong specification and the backing of a five year structural warranty.

A new Boxer tyre package combines both the BB2200 tilt back tyre changer and BB4100 digital wheel balancer for just £2,495, offering an exceptionally cost effective way to offer tyre work.

“The Garage Essentials programme is now available across The Parts Alliance,” said John Wright, Head of Garage Equipment and Customer Development. “Suppliers have really got behind us and continue to support Garage Essentials with a unique number of exclusive ranges and deals.”

Strenuous efforts are made to source these unique deals direct from manufacturer. Workshop cornerstones like the Mini Ductor II flameless heat-gun is a great example. It’s supplied with three coils included for a wide range of applications, all for just £490 + VAT.

Garages can contact their local branch of The Parts Alliance to pick up the summer issue of Garage Essentials.

The Parts Alliance answers call from the AA and gains a 5 year supply contract.

The Parts Alliance is to partner with the AA and supply key products to Britain’s largest breakdown and recovery organisation. The products will cover batteries, vehicle parts and consumables in a supply contract for five years.

The Parts Alliance, the UK and Ireland’s largest group of automotive parts distributors, will support the AA national patrol force as they attend more daily breakdowns than any other recovery organisation in the UK.

Sarah Millward, Commercial Director Road Operations at the AA said:

“Both sides have been working diligently to ensure the varied and special requirements of Britain’s largest breakdown organisation can be met.”

“The Parts Alliance has shown it has the footprint and market leading systems to support our needs, while also providing access to a wide ranging supply of quality parts, which is critical in enabling us to maintain our service to our members.”

The Parts Alliance and their supply partners provide service from 360 distribution sites using over 3,500 delivery vehicles to deliver a full range of OE quality branded products from the largest national parts distribution network in the UK and Ireland.

Mike Curry, The Parts Alliance National Accounts Sales Director, said: “The length of this contract with the AA is testament to our partnership to date and is a major business win for our group.

“We are supplying the AA with premium quality brands from stock to provide an all makes parts programme, our market leading catalogue Allicat identifies the correct vehicle fitment required and has the lowest product returns rate within our industry which helps reduce breakdown repair times.”

Peter Sephton, Chief Executive of The Parts Alliance, said: “We are delighted to be a business partner and supplier to the AA, one of Britain’s most trusted brands.

“As with all our customers, we want to go that extra mile to ensure we deliver the right level of support, quality parts, systems and innovation to meet their needs. Allicat and our PartVend are two examples of how we can do this.”

The Parts Alliance is also pioneering the use of autoparts vending machines. These ensure the supply of key products is available in strategic locations with access 24/7.

The new AA contract follows further contract wins with major retail chains and workshops for The Parts Alliance.