Uni-Select Inc. reports sales of $302.5 million in the second quarter of 2020, down some 33.7% from Q2 2019.
The company said the drop was “a direct effect of the Covid-19 pandemic.”
President and CEO Brent Windom said the Corporation’s sales performance was better than expected with sales steadily increasing month after month during the quarter, with June sales closing at over 85% compared to the same month last year.
As a result, sales for the second quarter of 2020 exceeded the internal forecast set in late March in response to the uncertainty surrounding the pandemic.
In a call with investors earlier this week, the company reported its second quarter financial results and highlights, and reported on the progress of its Continuous Improvement Plan (CIP).
Annualized savings from the company’s CIP totaled $14.0 million during the quarter – mostly through headcount reduction. The full 2020 savings is expected to top $28 million.
“We are pleased with our second quarter results as they were better than we expected given the difficult operating environment caused by the pandemic,” Windom said. “The temporary measures we put in place for business continuity, in response to COVID-19, better aligned our cost structure with the current state of the market while allowing us to continue to serve our customers with the highest standards. Furthermore, the execution of our cash preservation plan allowed us to successfully maximize our liquidity and financial flexibility.”
Windom said the company is confident in the sustainability of its business and its ability to maintain market position in this challenging period.
“At this stage, we anticipate a faster recovery from the auto parts aftermarket and a slower recovery in the refinish market,” he said. “While we are encouraged by month-over-month improvements, market conditions remain volatile. We have the financial flexibility to execute our business plan and will prioritize debt reduction in our capital allocation strategy.”
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