Auto Service World
News   August 2, 2001   by Auto Service World

Uni-Select Inc. Increases 2nd Quarter Earnings By Nearly 50%


Uni-Select releases its results for the second quarter of 2001, posting a 47.3% increase in earnings over last year.
The company’s net earnings have increased by 47.3% to $4,374,000 or $0,24 per share compared to $2,970,000 or $0.16 per share, for the corresponding period of 2000. It should be noted that Uni-Select’s results during the second quarter of 2000 included rationalization fees totaling $1,423,000 before income taxes ($855,000 after taxes or $0.05 per share). Net earnings for the six month period ended June 30, 2001, reached $6,618,000 or $0.37 per share compared to $5,193,000 or $0.28 per share last year.
Second quarter sales reached $171,656,000 an increase of 13.3% over sales of $151,504,000 during the second quarter of 2000. For the six month period ended June 30, 2001, sales reached $309,877,000 an increase of 8.2% over sales of $286,261,000 realized in 2000.
The company will pay a quarterly dividend of $0.05 per share.
Sales of Automotive Group Canada increased by 6.8% during the second quarter. This growth was felt mainly in Ontario due to the acquisition of assets of “The Cooling Depot” which still contribute to a superior performance in this market, as well as in the Atlantic provinces and Quebec. British Columbia and the Prairies experienced lower growth. Furthermore, Automotive Group Canada improved its operating margin which was 6.5% during the course of the second quarter compared to 6.2% the same quarter a year earlier.
Automotive Group USA recorded an increase in sales of 63.8% at $36,584,000 compared to $22,333,000 for the same quarter a year earlier. This increase is the result of the full consolidation of revenues of the North Central division and the impact of the acquisitions completed in the last quarter of 2000 and early 2001. Automotive Group USA maintained its operating margin at 4.9% in spite of the costs generated by the integration of the latest acquisitions.
The Heavy Duty Group had sales of $13,401,000 for the second quarter of 2001 a decrease of 12.2%. This decrease is both the result of the rationalization and closure of one third of the outlets completed in the third quarter of 2000 and of cyclic and structural changes in the trucking industry. In spite of these difficult conditions, the Heavy Duty Group has achieved an operating profit of 0.9% for the second quarter compared to an operating loss of 1.4% for the same period last year.
“Canadian market conditions improved during the second quarter. It is an encouraging sign even though automotive analysts do not foresee an improvement before the end of 2002. Our previous merger and acquisition activities in the United States will continue to generate growth in 2001” commented Jacques Landreville, president and chief executive officer.


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