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Uni-Select Reports Second-Quarter Sales Increase of 1.7 Percent


9/10/2012

 
BOUCHERVILLE, Quebec – Uni-Select Inc. generated sales of $483 million in the second quarter of 2012, compared to $475 million in the same period of 2011.

Net earnings stood at $15.1 million or 70 cents per share in the second quarter of 2012 compared to $18.5 million or 85 cents per share for the same quarter of the prior year. Uni-Select said the increase in sales stems primarily from the addition of the purchased assets in Florida in the fourth quarter of 2011, which was partly offset by the temporary slowdown due to economic and climatic conditions that prevailed during the quarter in the United States. The effect of variations of the Canadian dollar relative to the U.S. dollar had an unfavorable impact of $6 million on sales for the quarter.
 


“The earning contributions from the acquisitions completed in 2011 combined with current initiatives to improve our performance were offset by the significant slowdown due to economic and climatic conditions which prevailed in the second quarter,” said Richard Roy, president and CEO of Uni-Select. “The outlook for our industry remains positive; the fleet size and average age of vehicles, amongst others, are rising. We intend to capitalize on the benefits through the introduction of initiatives aimed at improving our performance and reducing our operational costs.”

Uni-Select’s board of directors has approved a distribution network rationalization and consolidation plan, which also includes a revision of the operational structure and reduction of administrative expenses. The company says it expects cost savings of approximately $8 million in 2012 and $20 million annually beginning in 2013. The total cost of implementing the consolidation plan will be approximately $22 million, of which approximately $13 million represents an asset write-down.

A provision to this effect will be recorded in the third quarter of 2012 in the corporation’s financial statements.













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