Uni-Select Inc. (UNIEF) CEO Brian McManus on Q2 2022 Results – Earnings Call Transcript – Seeking Alpha
Uni-Select Inc. (OTCPK:UNIEF) Q2 2022 Earnings Conference Call August 5, 2022 8:00 AM ET
Company Participants
Max Rogan – Chief Legal Officer and Corporate Secretary
Brian McManus – Executive Chair and Chief Executive Officer
Anthony Pagano – Chief Financial Officer
Conference Call Participants
David Ocampo – Cormark Securities
Luke Hannan – Canaccord
Daryl Young – TD Securities
Benoit Poirier – Desjardins Capital Markets
Zachary Evershed – National Bank
Sabahat Khan – RBC Capital Markets
Daryl Young – TD Securities
Operator
Good morning, ladies and gentlemen, and welcome to Uni-Select Inc.’s 2022 Second Quarter Results Conference Call. At this time all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] Note that today’s call is being recorded. [Foreign Language]
And I would like to turn the conference over to Max Rogan, Chief Legal Officer and Corporate Secretary. Please go ahead, sir.
Max Rogan
Thank you. Good morning, everyone, and thank you for joining us for Uni-Select’s second quarter conference call. Presenting this morning are Brian McManus, Executive Chair and CEO of Uni-Select; and Anthony Pagano, Chief Financial Officer. Following their comments, we will open the call for questions.
Please note that all documents referred to in today’s conference call, including this webcast presentation, can be found on our website at uniselect.com in the Investors section.
As noted on Slide 2, I would like to remind you about the caution regarding forward-looking statements, which applies to our presentation and comments. All amounts are expressed in U.S. dollars, except as otherwise specified.
With that, let me turn the call over to Brian.
Brian McManus
Thank you, Max. Good morning, everyone, and thank you for joining us for our second quarter results conference call. Please turn to Slide 4 for the key highlights of the second quarter. We are very pleased with our second quarter results that build on the positive results from our first quarter. We continue to see organic sales growth in all three business units due to market tailwinds and price increases. Costs [ph] were also well contained in the quarter and reflect continued discipline of operational excellence and our culture of ownership. As a result of these factors and additional vendor rebates, we reported very strong profitability in the quarter.
Consolidated sales for the second quarter were up 6.7% to $444 million from $416 million last year, primarily attributable to organic growth of 10.8%. In turn, adjusted EBITDA increased 38.5% to $51 million or a margin of 11.5% compared to $37 million or a margin of 8.9% last year, representing an increase of 250 basis points. This performance was largely driven by higher sales, additional vendor rebates in all segments and benefits from our streamlined cost structure.
These factors were partially offset by certain inflationary costs, including fuel and wages as well as the timing of certain expenses related to network expansion at GSF. As a result of higher adjusted EBITDA and significantly lower financing expenses, diluted adjusted EPS more than doubled to $0.51 per share versus $0.24 per share last year.
In addition to our regular financial review, I am pleased to announce that subsequent to quarter end, we announced and closed the acquisition of Maslack Supply, a distributor of automotive and industrial parts and paint located in Northern Ontario. The acquisition …….