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Freitag, 11.08.2017 12:00 von PR Newswire | Aufrufe: 53

Wajax Reports 2017 Second Quarter Results

Tageszeitungen (Symbolbild). pixabay.com

Canada NewsWire

TORONTO, Aug. 11, 2017

TSX Symbol: WJX

TORONTO, Aug. 11, 2017 /CNW/ - Wajax Corporation ("Wajax" or the "Corporation") today announced improved 2017 second quarter results compared to the previous year.

(Dollars in millions, except per share data)

Three Months Ended June 30

Six Months Ended June 30

2017

2016

ARIVA.DE Börsen-Geflüster

Kurse

WAJAX CORP.

23,00 $

-5,02%

2017

2016

CONSOLIDATED RESULTS

Revenue

$325.3

$336.6

$643.7

$621.6

Equipment sales

$109.3

$129.4

$206.7

$211.8

Equipment rental

$7.5

$8.7

$15.9

$17.7

Industrial parts

$87.0

$82.6

$176.6

$163.2

Product support

$107.9

$101.6

$218.1

$200.5

Other

$13.6

$14.3

$26.4

$28.4

Net earnings (loss)

$7.6

$4.3

$13.8

$(5.4)

Basic earnings (loss) per share

$0.39

$0.22

$0.70

$(0.27)

Adjusted net earnings⁽¹⁾⁽²⁾

$7.3

$4.3

$13.6

$3.7

Adjusted basic earnings per share^(1)(2)(3)

$0.37

$0.22

$0.69

$0.19

Second Quarter Highlights

The Corporation generated revenue of $325.3 million in Q2 2017 versus $336.6 million for the same period in 2016. Revenue in Q2 2016 included approximately $20 million in additional mining equipment sales that were not repeated in Q2 2017. Adjusting for these sales, revenue increased 2.7% year-over-year, primarily on the strength of:

higher construction equipment sales in central and western Canada;
higher bearing and power transmission sales in eastern Canada;
higher hydraulic sales in western Canada;
higher construction and mining parts and services sales in western Canada; and
higher on-highway parts and service sales in all regions.

EBIT increased to $13.1 million in Q2 2017 versus $8.8 million for the same period in 2016.⁽¹⁾ The year-over-year improvement is attributable to improved margins resulting from increasing revenue composition from industrial parts sales and product support sales as well as improved parts and service margin rates. The improvement in margin was partially offset by lower revenue and modestly higher selling and administrative expenses relating primarily to incentive compensation. In Q2 2017, the Corporation's active headcount was 6% lower compared to the same period in the prior year.
Based on the improved EBIT result, the Corporation generated net earnings of $7.6 million or $0.39 per share for Q2 2017 versus $4.3 million or $0.22 per share for the same period in 2016.
The Corporation's Q2 2017 backlog was $159.7 million, materially unchanged from Q1 2017 backlog of $160.0 million.⁽¹⁾Compared to the second quarter of 2016, backlog decreased $5.5 million, or 3%, due primarily to lower mining equipment orders.⁽¹⁾
The Corporation's Q2 2017 leverage ratio of 1.95 times remained essentially unchanged from Q1 2017.⁽¹⁾
Wajax declared a Q3 2017 dividend of $0.25 per share payable on October 3, 2017 to shareholders of record on September 15, 2017.

Commenting on the Corporation's second quarter results, President and Chief Executive Officer Mark Foote stated, "We are satisfied with the improvement in our second quarter financial results which continued to benefit from improved volumes in western Canada. Higher construction equipment sales in western and central Canada helped offset lower mining equipment revenue. Industrial parts sales and product support volumes improved broadly, reflecting excellent work by our team to meet customer demand. We are also very pleased with our safety performance in the second quarter, with a 33% decline in recordable injuries versus the prior quarter and no lost time incidents. We express our thanks to the entire Wajax team for their hard work and ongoing dedication to improving customer service, working safely and delivering better financial results".

Mr. Foote continued, "Although second quarter results continue to show year-over-year improvement, we expect that most major resource and industrial markets will remain under ongoing spending constraints and margin pressures through the remainder of 2017. We remain focused on generating revenue sufficient to offset the four large mining shovel deliveries we made in 2016, which are not expected to be repeated in 2017, managing our margins effectively and ensuring we deliver the expected benefits from our 2016 strategic reorganization. Assuming the achievement of these objectives, management continues to anticipate adjusted net earnings for 2017 will increase compared to 2016 adjusted net earnings".

Wajax Corporation

Founded in 1858, Wajax (TSX: WJX) is one of Canada's longest-standing and most diverse industrial products and services providers. The Corporation operates an integrated distribution system providing sales, parts and services to a broad range of customers in diversified sectors of the Canadian economy, including: transportation, forestry, industrial and commercial, construction, oil sands, mining, metal processing, government and utilities and oil and gas.

The Corporation's goal is to be Canada's leading industrial products and services provider, distinguished through its three core capabilities: sales force excellence, the breadth and efficiency of repair and maintenance operations, and the ability to work closely with existing and new vendor partners to constantly expand its product offering to customers. The Corporation believes that achieving excellence in these three areas will position it to create value for its customers, employees, vendors and shareholders.

Wajax will Webcast its Second Quarter Financial Results Conference Call. You are invited to listen to the live Webcast on Friday, August 11, 2017 at 1:00 p.m. ET. To access the Webcast, please visit our website wajax.com, under "Investor Relations", "Events and Presentations", "Webcasts" and click on the webcast link.

Notes

(1)	"Adjusted net earnings", "Adjusted basic earnings per share", "EBIT", "Backlog" and "Leverage ratio" are financial measures which do not have standardized meanings 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".
(2)	Adjusted net earnings for the three months ended June 30, 2017: net earnings (loss) excluding after-tax restructuring recovery of $0.2 million, or basic earnings per share of $0.01.
	Adjusted net earnings for the six months ended June 30, 2017: net earnings (loss) excluding after-tax restructuring recovery of $0.2 million (2016 – costs of $9.1 million), or basic earnings per share of ($0.01) (2016 - $0.46).
(3)	For the three months ended June 30, 2017, the weighted average shares outstanding for calculation of basic earnings (loss) per share were 19,601,269 (2016 – 19,956,921).
	For the six months ended June 30, 2017, the weighted average shares outstanding for calculation of basic earnings (loss) per share were 19,709,348 (2016 – 19,973,842).

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, our outlook for major resource and industrial markets for the remainder of 2017; our areas of focus for the remainder of 2017, including generating revenue sufficient to offset the four large mining shovel deliveries we made in 2016 which are not expected to repeat in 2017, effectively managing our margins and delivering the expected benefits from our 2016 strategic reorganization; our outlook for 2017 adjusted net earnings should we be successful in achieving the forgoing objectives; our 4 Points of Growth Strategy and the goals for such strategy, including our goal of becoming Canada's leading industrial products and services provider; and our belief that achieving excellence in our areas of core capability will position Wajax to create value for its customers, employees, vendors and shareholders. 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 realize the expected benefits from our 2016 strategic reorganization, 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. 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, 2016, filed on SEDAR. 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.

Additional information, including Wajax's Annual Report, is available on SEDAR at www.sedar.com.

Wajax Corporation
Management's Discussion and Analysis – Q2 2017

The following management's discussion and analysis ("MD&A") discusses the consolidated financial condition and results of operations of Wajax Corporation ("Wajax" or the "Corporation") for the quarter ended June 30, 2017. This MD&A should be read in conjunction with the information contained in the unaudited condensed consolidated financial statements and accompanying notes for the quarter ended June 30, 2017, the annual audited consolidated financial statements and accompanying notes for the year ended December 31, 2016 and the associated MD&A. Information contained in this MD&A is based on information available to management as of August 11, 2017.

Management is responsible for the information disclosed in this MD&A and the unaudited condensed consolidated financial statements and accompanying notes, and has in place appropriate information systems, procedures and controls to ensure that information used internally by management and disclosed externally is materially complete and reliable. Wajax's Board of Directors has approved this MD&A and the unaudited condensed consolidated financial statements and accompanying notes. In addition, Wajax's Audit Committee, on behalf of the Board of Directors, provides an oversight role with respect to all public financial disclosures made by Wajax and has reviewed this MD&A and the unaudited condensed consolidated financial statements and accompanying notes.

Unless otherwise indicated, all financial information within this MD&A is in millions of Canadian dollars, except ratio calculations, share, share rights and per share data. Additional information, including Wajax's Annual Report and Annual Information Form, are available on SEDAR at www.sedar.com.

Wajax Corporation Overview

The Corporation's goal is to be Canada's leading industrial products and services provider, distinguished through its three core capabilities: sales force excellence, the breadth and efficiency of repair and maintenance operations and the ability to work closely with existing and new vendor partners to constantly expand its product offering to customers. The Corporation believes that achieving excellence in these three areas will position it to create value for its customers, employees, vendors and shareholders.

Strategic Direction and Outlook

The strategic reorganization announced in March 2016 was completed during the first quarter of 2017. The Corporation continues to estimate annualized cost savings from the reorganization of approximately $17 million in 2017. Management anticipates that certain volume related costs and investments in strategic initiatives to pursue organic growth opportunities will be incurred in 2017, which will partially offset these cost savings.

Management remains committed to, and confident in, the execution of our 4 Points of Growth Strategy to create value for customers, vendors and shareholders.

Wajax's 4 Points of Growth

Looking forward to the remainder of 2017, although second quarter results continue to show year-over-year improvement, management expects that most major resource and industrial markets will remain under ongoing spending constraints and margin pressures through the remainder of 2017. The Corporation remains focused on generating revenue sufficient to offset the four large mining shovel deliveries made in 2016, which are not expected to be repeated in 2017, managing margins effectively and ensuring the Corporation delivers the expected benefits from the 2016 strategic reorganization. Assuming the achievement of these objectives, management continues to anticipate adjusted net earnings for 2017 will increase compared to 2016 adjusted net earnings.⁽¹⁾ See the Non-GAAP and Additional GAAP Measures section.

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