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Dienstag, 01.11.2016 13:00 von PR Newswire | Aufrufe: 26

Wajax Announces 2016 Third Quarter Earnings

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Canada NewsWire

TORONTO, Nov. 1, 2016

TSX Symbol: WJX

(Dollars in millions, except per share data)

Three Months Ended September 30

Nine Months Ended September 30

2016

2015

2016

ARIVA.DE Börsen-Geflüster

Kurse

WAJAX CORP.

23,40 €

0,00%

2015

CONSOLIDATED RESULTS

Revenue

$286.6

$290.9

$908.2

$948.9

Net earnings⁽¹⁾⁽²⁾

$7.6

$7.5

$2.1

$22.2

Basic earnings per share^(1)(2)(3)

$0.38

$0.11

$1.23

SEGMENTS

Revenue

- Equipment

$138.9

$129.3

$444.9

$441.9

- Power Systems

$55.5

$65.9

$180.3

$214.3

- Industrial Components

$93.3

$96.6

$285.9

$295.3

Earnings

- Equipment⁽⁴⁾

$10.7

$10.5

$30.7

$29.0

% margin

7.7%

8.1%

6.9%

6.6%

- Power Systems⁽²⁾⁽⁴⁾

$0.9

$1.1

$(6.4)

$5.6

% margin

1.6%

1.7%

(3.5)%

2.6%

- Industrial Components⁽⁴⁾

$4.4

$4.7

$9.3

$13.5

% margin

4.7%

4.8%

3.2%

4.6%

TORONTO, Nov. 1, 2016 /CNW/ - Wajax Corporation ("Wajax" or the "Corporation") today announced its 2016 third quarter earnings.

Third Quarter Highlights

Consolidated third quarter revenue of $286.6 million decreased slightly compared to last year. The Equipment segment recorded 7% higher revenue during the quarter on the sale of a large mining shovel and higher parts and service volumes. Power Systems and Industrial Components segment revenue declined 16% and 3% respectively, primarily as a result of reduced activity in the western Canada energy sector.
Net earnings for the quarter of $7.6 million, or $0.38 per share, increased slightly compared to $7.5 million, or $0.38 per share, recorded during the same quarter last year. The higher net earnings were attributable to a decrease in selling and administrative costs, primarily resulting from restructuring activities, offset by lower revenue and gross margins. Net earnings during the quarter include $1.0 million in pre-tax insurance proceeds related to the Fort McMurray wildfires and third quarter 2015 net earnings included a $2.8 million pre-tax gain on the monetization of mining trucks.
Consolidated backlog at September 30, 2016 of $142.1 million decreased $23.1 million compared to $165.2 million on June 30, 2016. An $8.1 million increase in Power Systems segment backlog was more than offset by declines in the Equipment and Industrial Components segments.⁽⁵⁾
Funded net debt of $147.9 million at September 30, 2016 declined $10.7 million, from $158.6 million at June 30, 2016, as cash generated from operating activities exceeded investing activities and dividends.⁽⁵⁾

Wajax declared a quarterly dividend of $0.25 per share payable on January 4, 2017 to shareholders of record on December 15, 2016.

Outlook

Commenting on third quarter results and the Corporation's outlook for the remainder of 2016, Mark Foote, President and CEO, stated:

"As expected, third quarter net earnings improved compared to the second quarter and included $1.0 million in insurance proceeds related to the Fort McMurray wildfires. We are particularly pleased by the improvement in our Power Systems segment, where our cost reduction and margin improvement initiatives began to pay off despite continuing challenges in the western Canada market. Consolidated net earnings were up slightly compared to the previous year as savings from our restructuring activities were more fully realized. This net earnings improvement was achieved despite lower revenue and a $2.8 million gain on the monetization of mining trucks recorded in third quarter of 2015.

The reorganization announced in March 2016 is proceeding on schedule and we are on track for completion by the end of 2016. We now expect approximately $8 million of savings in 2016, with the full $15 million in estimated cost savings expected to be realized in 2017.

Consistent with the last two quarters, our outlook for the remainder of 2016 is that market conditions will remain challenging, particularly in western Canada. However, we expect fourth quarter earnings will continue to benefit from the earnings improvement initiatives implemented in the Power Systems segment and from the completion of our reorganization."

Wajax Corporation

Wajax is a leading Canadian distributor engaged in the sale, rental and after-sale parts and service support of equipment, power systems and industrial components, through a network of 121 branches across Canada. The Corporation is a multi-line distributor and represents a number of leading worldwide manufacturers across its core businesses. Its customer base is diversified, spanning natural resources, construction, transportation, manufacturing, industrial processing and utilities.

Wajax will Webcast its Third Quarter Financial Results Conference Call. You are invited to listen to the live Webcast on Tuesday, November 1, 2016 at 1:30 p.m. ET. To access the Webcast, enter www.wajax.com and click on the link for the Webcast on the Investor Relations page.

Notes:

⁽¹⁾	Figures for the nine months ended September 30, 2016 include a $12.5 million pre-tax restructuring charge.
⁽²⁾	Figures for the nine months ended September 30, 2015 include a $2.1 million pre-tax restructuring charge.
⁽³⁾	For the three and nine months ended September 30, 2016, the weighted average number of basic shares outstanding were 19,840,499 (2015 – 19,978,351) and 19,929,070 (2015 - 18,079,594), respectively.
⁽⁴⁾	Segment earnings (loss) before finance costs and income taxes.
⁽⁵⁾	"Consolidated backlog" and "funded net debt" are financial measures which do not have a standardized meaning prescribed under generally accepted accounting principles (GAAP), and may not be comparable to similar measures presented by other issuers. The Corporation's Management's Discussion and Analysis (MD&A) includes additional information regarding these financial measures, including definitions and reconciliations to the most comparable GAAP measures, under the heading "Non-GAAP and Additional GAAP Measures".

Cautionary Statement Regarding Forward Looking Information

This news release contains certain forward-looking statements and forward-looking information, as defined in applicable securities laws (collectively, "forward-looking statements"). These forward-looking statements relate to future events or the Corporation's future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward looking statements can be identified by the use of words such as "plans", "anticipates", "intends", "predicts", "expects", "is expected", "scheduled", "believes", "estimates", "projects" or "forecasts", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward looking statements involve known and unknown risks, uncertainties and other factors beyond the Corporation's ability to predict or control which may cause actual results, performance and achievements to differ materially from those anticipated or implied in such forward looking statements. There can be no assurance that any forward looking statement will materialize. Accordingly, readers should not place undue reliance on forward looking statements. The forward looking statements in this news release are made as of the date of this news release, reflect management's current beliefs and are based on information currently available to management. Although management believes that the expectations represented in such forward-looking statements are reasonable, there is no assurance that such expectations will prove to be correct. Specifically, this news release includes forward looking statements regarding, among other things, the cost savings we expect to achieve from our ongoing strategic reorganization, including an expected $8 million during 2016 and $15 million during 2017; our outlook for the remainder of 2016, including our view that market conditions will remain challenging, particularly in western Canada; and our expectation that our fourth quarter financial results will continue to benefit from our initiatives at Power Systems, as well as the completion of our reorganization. These statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions regarding general business and economic conditions; the supply and demand for, and the level and volatility of prices for, oil and other commodities; financial market conditions, including interest rates; our ability to execute our 4 Points of Growth strategy, including our ability to develop our core capabilities, execute on our organic growth priorities, complete and effectively integrate acquisitions and to successfully implement new information technology platforms, systems and software; our ability to execute our strategic reorganization and realize the benefits therefrom, including cost savings and productivity gains; the future financial performance of the Corporation; our costs; market competition; our ability to attract and retain skilled staff; our ability to procure quality products and inventory; and our ongoing relations with suppliers, employees and customers. The foregoing list of assumptions is not exhaustive. Factors that may cause actual results to vary materially include, but are not limited to, a deterioration in general business and economic conditions; volatility in the supply and demand for, and the level of prices for, oil and other commodities; a continued or prolonged decrease in the price of oil; fluctuations in financial market conditions, including interest rates; the level of demand for, and prices of, the products and services we offer; levels of customer confidence and spending; market acceptance of the products we offer; termination of distribution or original equipment manufacturer agreements; unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, our inability to reduce costs in response to slow-downs in market activity, unavailability of quality products or inventory, supply disruptions, job action and unanticipated events related to health, safety and environmental matters), our ability to attract and retain skilled staff and our ability to maintain our relationships with suppliers, employees and customers. The foregoing list of factors is not exhaustive. The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. The Corporation does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws. Further information concerning the risks and uncertainties associated with these forward looking statements and the Corporation's business may be found in our Annual Information Form for the year ended December 31, 2015, filed on SEDAR.

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