Uni-Select Inc. is providing a business update for July and August, including market conditions in the U.S., Canada and the U.K., its organic sales growth, the status of its Continuous Improvement Plan and its financial position.
- Key industry metrics in the U.S., Canada and the U.K. are showing clear signs of recovery. In the U.S., claim counts are gradually recovering, in Canada, traffic levels are getting closer to the 2019 level and in the U.K., transport use has essentially returned to more normalized levels.
- Uni-Select’s sales trend improved progressively month after month to reach (10.9%) in August since the (45.8%) though experienced in April.
- As at August 31, 2020, Uni-Select had realized over 90% of the targeted $28 million of annualized cost savings through the Continuous Improvement Plan.
- As at August 31, 2020, driven by better than expected operations, Uni-Select was able to further improve its access to liquidity to reach over $200 million, up from $182 million at the end of the second quarter.
“Market conditions in all three of our segments have improved sequentially since the trough set in April which is encouraging in the current context. In turn, our monthly organic sales growth has mirrored the improvement in the market. As expected, the Canadian Automotive Group and the Parts Alliance U.K. business segments are returning to historical sales levels at a faster rate than the refinish sector FinishMaster U.S., overall demonstrating the resiliency of our automotive aftermarket businesses,” stated Brent Windom, President and Chief Executive Officer of Uni-Select Inc.
“Furthermore, we continued executing our Continuous Improvement Plan, and as at the end of August, realized over 90% of the targeted $28 million annualized cost savings. We will continue to diligently monitor the evolution of COVID-19 and its impact on our business, improve our operations and transition to automation to enhance organizational speed and position the Corporation for growth post-COVID-19. In addition, we continued to focus on our cash management plan. As at the end of August, we had sufficient liquidity and were in compliance with our covenants. I would like to thank our team members for their perseverance and dedication as well as our customers and suppliers for their understanding and support,” concluded Mr. Windom.
Further information will be provided in the company’s third quarter results which will be released November 13, 2020.
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