Uni-Select Inc. (TSX: UNS) ('Uni-Select' or 'Corporation') today reported its financial results for the fourth quarter and the year ended December 31, 2020.
'By and large, our fourth-quarter results were in line with those of the previous quarter, ending a difficult year with a degree of stability. Sales for 2020 were down 15%, impacted by the global pandemic, but mirrored the trend in our three markets with a trough in the second quarter and a sharp bounce back in the second half of the year. As expected, automotive aftermarket businesses fared better than the refinish business in the U.S.,' stated Brent Windom, President and Chief Executive Officer of Uni-Select Inc. 'While our adjusted EBITDA (1) followed a similar path, our adjusted EBITDA margin (1) returned to normalized levels in the second half of the year, with our two automotive aftermarket businesses reporting 2020 margins superior to last year. We were able to achieve this by implementing stringent cost control measures and leveraging our continuous improvement culture which, this year alone, allowed us to generate an additional $30 million in annualized cost savings. These actions, coupled with tight management of our working capital, translated into strong cash flow from operations of $133 million for the year, which we used primarily to reduce our total net debt (1), in line with our capital allocation strategy. Looking forward, there remains a great deal of uncertainty related to the global pandemic, the Brexit overhang and ongoing structural changes in the refinish market in the U.S. With the visibility we have as of today, we expect our 2021 consolidated sales and adjusted EBITDA (1) to progressively improve over 2020. During the year, we expect to ramp up certain capital investments to pre-COVID levels. We continue to be confident in the sustainability of our business and have the financial flexibility to execute our business plan,' concluded Mr. Windom.
ABOUT UNI-SELECT With over 4,800 employees in Canada, the U.S. and the U.K., Uni-Select is a leader in the distribution of automotive refinish and industrial coatings and related products in North America, as well as a leader in the automotive aftermarket parts business in Canada and in the U.K. Uni-Select is headquartered in Boucherville, Quebec, Canada, and its shares are traded on the Toronto Stock Exchange (UNS). In Canada, Uni-Select supports over 16,000 automotive repair and collision repair shops and more than 4,000 shops through its automotive repair/installer shop banners and automotive refinish banners. Its national network includes over 1,000 independent customer locations and more than 75 company-owned stores, many of which operate under the Uni-Select BUMPER TO BUMPER, AUTO PARTS PLUS and FINISHMASTER store banner programs. In the United States, Uni-Select, through its wholly-owned subsidiary FinishMaster, Inc., operates a national network of over 145 automotive refinish company-owned stores under the FINISHMASTER banner, which supports over 30,000 customers annually. In the U.K. and Ireland, Uni-Select, through its Parts Alliance group of subsidiaries, is a major distributor of automotive parts supporting over 20,000 customer accounts with a network of over 170 company-owned stores. www.uniselect.com
CAUTION REGARDING FORWARD-LOOKING INFORMATION
Certain statements made in this press release are forward-looking statements. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, project, strategy, target and other similar expressions or future or conditional verbs such as aim, anticipate, believe, could, expect, intend, may, plan, seek, should, strive and will. Forward-looking statements in this press release include statements relating to our expectation as to the expected cost savings resulting from the Continuous Improvement Plan, productivity, efficiency and right-sizing initiatives and the expected timing of those savings and related costs, and our ability to face the ongoing economic uncertainty. All such forward looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws. Forward-looking statements are, by their very nature, subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which may cause expressed expectations to be significantly different from those listed or implied within this press release and our business outlook, objectives, plans and strategic priorities may not be achieved. In particular, UniSelect is facing significant impacts on its business as a result of the COVID-19 pandemic. The COVID-19 pandemic has resulted in a major decline in economic activity in North America and the United Kingdom resulting in a decline in demand for Uni Select's products and services, reduced workplace productivity resulting from government-ordered business closures and enhanced health and safety measures and compromised business continuity of certain of Uni-Select's stores, suppliers, customers and/or partners. The duration and extent of the impact of the COVID-19 pandemic on Uni-Select's business, including its operations and the market for its securities, will depend on future developments, which are highly uncertain and cannot be predicted at this time, and include the duration, severity and scope of the pandemic and the actions taken in various jurisdictions to contain or treat the outbreak. These impacts could in turn, amongst other things, negatively impact Uni-Select's liquidities and/or its ability to remain in compliance with covenants under its indebtedness. Risks and uncertainties to which the forward-looking statements are subject also include the risk factors described in the Corporation's Management's Discussion & Analysis for the year ended December 31, 2020, under the heading 'Risk Management' available on www.sedar.com as well as on Uni-Select's website at www.uniselect.com. As a result, we cannot guarantee that any forward-looking statement will materialize, and we caution you against relying on any of these forward-looking statements. The forward-looking information contained herein is made as of the date of this press release, and Uni-Select does not undertake to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.
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UNI-SELECT INC. 
