Uni-Select Inc. (TSX: UNS) (“Uni-Select” or “Corporation”) today reported its financial results for the third quarter ended September 30, 2020.
|Unless otherwise indicated in this press release, all amounts are expressed in thousands of US dollars, except tabular amounts, per share amounts and percentages.|
“Our third-quarter results improved significantly from the second quarter mirroring the bounce back in the market. As expected, the auto parts businesses rebounded more rapidly than the paint business, with the Canadian Automotive Group generating positive organic growth in the quarter. While our consolidated sales have not returned to normalized levels, we managed to maintain our adjusted EBITDA margin at 8.4%, in line with the same period last year, and returned to profitability with net income of $4.5 million,” said Brent Windom, President and Chief Executive Officer of Uni-Select Inc.
“We were able to accomplish this solid performance due to the successful execution of measures we put in place for business continuity, in response to COVID-19, coupled with stringent cost control initiatives and the acceleration of our Continuous Improvement Plan. At the end of the quarter, we had realized $30.0 million annualized cost savings since the launch of the plan in June 2020, essentially completing it on target and ahead of schedule. These actions, combined with our tight working capital management, translated into strong cash flow generation which was used primarily to reduce debt.
Looking forward, we expect the fourth quarter to be softer given normal seasonality patterns, volatile market conditions brought on by the onset of the second wave of COVID-19 and in particular with the re-confinement in the United Kingdom, as well as a slower recovery in the paint business in the U.S. We continue to be confident in the sustainability of our business and our ability to maintain our market position in this challenging period. We have the financial flexibility to execute our business plan and will prioritize debt reduction in our capital allocation strategy,” concluded Windom.
Full results can be found here.
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