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1 Together We Get More Done. WAJAX CORPORATION FINANCIAL RESULTS Q4 2024 March 4, 2025
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2 Wajax Financial Results - Q4 2024 (March 4, 2025) CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This presentation 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 future performance of Wajax Corporation (“we”, “us”, “our”, “Wajax” or the “Corporation”). 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. To the extent any forward-looking information in this presentation constitutes future-oriented financial information or financial outlook within the meaning of applicable securities law, such information is being provided to demonstrate the potential of the Corporation and readers are cautioned that this information may not be appropriate for any other purpose. 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 presentation are made as of the date of this presentation, 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 presentation includes forward-looking statements regarding, among other things: our corporate purpose and values statements, and our commitment to such purpose and values; our six strategic priorities for 2025: continuing to build a people-first company, growing Wajax’s existing business with a focus on parts, service and margin improvement, unlocking the potential of Wajax’s enhanced direct relationship with Hitachi, acquiring and integrating industrial parts and engineered repair services (“ERS”) businesses, improving cost structure and processes, and continuing Wajax’s enterprise resource planning (“ERP”) system rollout and additional technology improvements; our outlook for the first half of 2025, including our expectation of strong customer demand in the mining and energy sectors, headwinds related to softer market conditions in the broader market and uncertainty surrounding potential tariffs and counter-tariffs on Canada-U.S. trade, and additional headwinds should such tariffs materialize; management’s commitment to executing our six strategic priorities and our belief that such priorities will continue to support and position our business for future success; our additional focus on the execution of initiatives to reduce inventory, improve margins and lower costs. These statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions regarding: the absence of significant negative changes to general business and economic conditions ; our ability to manage our business through the imposition of new or changing trade tariffs; limited negative fluctuations in the supply and demand for, and the level and volatility of prices for, oil, natural gas and other commodities; the stability of financial market conditions, including interest rates; the ability of Hitachi and Wajax to develop and execute successful sales, marketing and other plans related to the expanded direct distribution relationship which took effect on March 1, 2022; our continued ability to execute our strategic priorities, including our ability to execute on our organic growth priorities, complete and effectively integrate industrial parts and ERS acquisitions, and successfully implement new information technology platforms, systems and software, such as our new ERP system; the future financial performance of the Corporation; limited fluctuations in our costs; the level of market competition; our continued ability to attract and retain skilled staff; our continued ability to procure quality products and inventory; and our ongoing maintenance of strong relationships 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 continued or prolonged deterioration in general business and economic conditions; new tariffs and counter-tariffs imposed on cross-border trade, particularly between Canada and the U.S.; negative fluctuations in the supply and demand for, and the level of prices for, oil, natural gas and other commodities; a continued or prolonged decrease in the price of oil or natural gas; the inability of Hitachi and Wajax to develop and execute successful sales, marketing and other plans related to the expanded direct distribution relationship which took effect on March 1, 2022; a decrease in levels of customer confidence and spending; supply chain disruptions and shortages; fluctuations in financial market conditions, including interest rates; the level of demand for, and prices of, the products and services we offer; decreased market acceptance of the products we offer; the 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 inability to attract and retain skilled staff and our inability to maintain strong relationships with our 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 MD&A for the year-ended December 31, 2024 (the “2024 MD&A”), which has been filed under the Corporation’s profile on SEDAR+ at www.sedarplus.ca, under the heading “Risk Management and Uncertainties”. The forward-looking statements contained in this presentation 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. Readers are cautioned that the risks described in the 2024 MD&A are not the only risks that could impact the Corporation. Risks and uncertainties not currently known to the Corporation, or currently deemed to be immaterial, may have a material effect on the Corporation’s business, financial condition or results of operations. Together We Get More Done.
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This presentation contains certain non-GAAP and other financial measures that do not have a standardized meaning prescribed by generally accepted accounting principles ("GAAP"). Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that these measures should not be construed as an alternative to net earnings or to cash flow from operating, investing, and financing activities determined in accordance with GAAP as indicators of Wajax’s performance. Please see Wajax’s Management’s Discussion and Analysis for the three and twelve months ended December 31, 2024, which is available under the Corporation's profile on SEDAR+ at www.sedarplus.ca, under the heading “Non-GAAP and Other Financial Measures” for definitions of these measures and reconciliations to the most directly comparable GAAP measures. 3 NON-GAAP AND OTHER FINANCIAL MEASURES Wajax Financial Results - Q4 2024 (March 4, 2025) Together We Get More Done.
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NATIONAL FOOTPRINT 167-year operating history 114 branches coast-to-coast A broad range of industrial products and services Diverse market and sector experience 4 WAJAX AT-A-GLANCE Together We Get More Done. Wajax Financial Results - Q4 2024 (March 4, 2025) REVENUE SOURCES Q4 2024 ($ millions) Industrial Parts and Engineered Repair Services (ERS) 38% Heavy Equipment 62% $12.1 $565.9M IN REVENUE Q4 2024 REVENUE SOURCES FY 2024 ($ millions) $2,097.6M IN REVENUE FY 2024 Industrial Parts and Engineered Repair Services (ERS) 43% Heavy Equipment 57% $45.5
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5 PURPOSE AND VALUES Together We Get More Done. Wajax Financial Results - Q4 2024 (March 4, 2025) Empowering People to Build a Better Tomorrow We commit to safety and well-being; We develop potential and expertise; We deliver an exceptional experience together; We build lasting relationships; and We strive to continuously improve.
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6 STRATEGIC PRIORITIES Together We Get More Done. Wajax Financial Results - Q4 2024 (March 4, 2025) Continue to build a people-first company. Grow our existing business with a focus on parts, service, and margin improvement. Unlock the potential of our enhanced direct relationship with Hitachi. Acquire and integrate Industrial Parts and ERS businesses. Improve our cost structure and processes. Continue ERP system roll-out and technology improvements.
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17.1% • The decrease in margin was driven primarily by lower margins realized on equipment, ERS and rental revenue due to increased market pressures, as well as a lower proportion of ERS, product support, and industrial parts sales relative to equipment sales $0.35per share 7 HIGHLIGHTS – FOURTH QUARTER Higher revenues and lower selling and administrative expenses were offset by lower gross profit margins and restructuring and other related costs REVENUE ADJUSTED BASIC EPS1 0.94 ADJUSTED EBITDA1 YTD TRIF3 Together We Get More Done. Wajax Financial Results - Q4 2024 (March 4, 2025) $565.9 million 4.3% -420 bps $35.1 million • Adjusted to exclude facility closure, restructuring and other related costs of $5.8 million, change in fair value of contingent consideration of $2.3 million and non-cash losses on mark to market of derivative instruments of $0.1 million -26% • Adjusted to exclude after-tax facility closure, restructuring and other related costs of $4.3 million and after-tax change in fair value of contingent consideration of $2.3 million -58% -7% • Thirty-two recordable incidents occurred in 2024, one less than last year Percentage change from Q4 2023 • Higher mining equipment sales in western Canada from delivery of two large mining shovels in the fourth quarter of 2024 with no such deliveries in the fourth quarter of the prior year • Lower ERS sales in western and central Canada GROSS PROFIT MARGIN1
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17% (2)% 8 Note: Totals may not add due to rounding. Fourth quarter growth in western Canada mining equipment sales was partially offset by declines in central and eastern Canada Q4 2024 ($ millions) Together We Get More Done. Wajax Financial Results - Q4 2024 (March 4, 2025) (5)% (5)% REVENUE BY REGION FY 2024 ($ millions) (3)% (3)%
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9 YoY Change 12.3% (0.4)% 3.0% (8.9)% (0.1)% YoY Change (21.6)% (25.8)% (5.2)% 4.5% 31.5% Equipment Product Support Together We Get More Done. Wajax Financial Results - Q4 2024 (March 4, 2025) HEAVY EQUIPMENT AND PRODUCT SUPPORT REVENUE • Increase from Q3 2024 was due primarily to higher mining sales in western Canada driven largely by the delivery of a large mining shovel in Q4 2024 with no such delivery in Q3 2024 and higher material handling sales in central and eastern Canada. • Increase from Q4 2023 was due primarily to higher mining sales in western Canada including the delivery of two large mining shovels in the fourth quarter of 2024 with no such deliveries in the fourth quarter of the prior year, as well as higher material handling sales in all regions. These increases were offset partially by lower construction and forestry sales in all regions. • Increase from Q3 2024 was due primarily to higher mining sales in western Canada and higher power systems sales in central and eastern Canada.
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10 YoY Change (1.4)% 1.0% (5.0)% (15.3)% (1.7)% YoY Change 42.8% (0.9)% (4.4)% 1.9% (23.7)% Industrial Parts ERS Together We Get More Done. Wajax Financial Results - Q4 2024 (March 4, 2025) INDUSTRIAL PARTS AND ERS REVENUE • Decrease from Q3 2024 was due primarily to lower sales in eastern Canada offset partially by higher sales in central Canada. • Decrease from Q4 2023 was due to lower sales in all regions, particularly in western Canada.
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11 Construction and Forestry: Includes the crane and utility category Power Systems: Includes the engines and transmissions, power and marine, and on-highway categories * Directional arrows applied to changes of +/- 2% year over year Note: Totals may not add due to rounding REVENUE BY CATEGORY Strong mining and material handling revenue offset lower industrial parts and ERS sales in the fourth quarter Together We Get More Done. Wajax Financial Results - Q4 2024 (March 4, 2025) CATEGORY4 Q4 2024 Q4 2023 CHANGE FY 2024 FY 2023 CHANGE W C E HEAVY EQUIPMENT $ 353.4 $ 303.0 $ 50.4 $ 1,199.1 $ 1,195.3 $ 3.8 ↓ — ↑ Construction and Forestry 126.9 146.2 (19.3) 511.2 542.7 (31.5) ↓ ↓ ↑ Mining 93.8 39.4 54.4 208.7 196.6 12.1 ↑ ↓ ↑ Material Handling 68.8 51.3 17.5 233.7 208.8 24.9 ↑ ↑ ↑ Power Systems 63.9 66.1 (2.3) 245.5 247.2 (1.7) ↓ — — INDUSTRIAL PARTS AND SERVICES $ 212.7 $ 239.6 $ (26.9) $ 898.5 $ 959.4 $ (60.9) ↓ ↓ ↓ Industrial Parts 133.6 136.0 (2.4) 572.0 605.1 (33.1) ↑ ↓ ↓ ERS 79.1 103.6 (24.6) 326.5 354.3 (27.8) ↓ — ↓ TOTAL $ 565.9 $ 542.6 $ 23.3 $ 2,097.6 $ 2,154.7 $ (57.1) ↓ ↓ ↓ CHANGE 4.3 % (2.6)% FY* 1 1 In the fourth quarter of 2024, the Corporation delivered two large mining shovels with no such delivery in the fourth quarter of the prior year
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1 12 BACKLOG1 INVENTORY Backlog Inventory 2 2 1 Together We Get More Done. Wajax Financial Results - Q4 2024 (March 4, 2025) 1. Backlog decreased by $23.7 million (-4.0%) from Q3 2024 to $564.4 million 2. Backlog increased by $10.5 million (1.9%) compared to Q4 2023 1. Total inventory of $673.1 million decreased $48.4 million compared to Q3 2024 2. Total inventory increased$38.0 million compared to Q4 2023
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DECREASE IN LEVERAGE DUE TO LOWER DEBT LEVEL DRIVEN LARGELY BY CASH GENERATED FROM OPERATING ACTIVITIES Working capital efficiency has improved from Q3 2024 due to lower trailing four quarter average working capital and higher trailing 12- month revenue Inventory turns remain unchanged from Q3 2024 Leverage1 CASH FLOW, LEVERAGE1 AND BALANCE SHEET 13 Cash Flow from Operating Activities Working Capital Efficiency1 Total committed credit facilities Together We Get More Done. Wajax Financial Results - Q4 2024 (March 4, 2025) 2.20x 2.17x 2.78x 2.61x 1.98x
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Management will execute initiatives to reduce inventory, improve margins and lower costs 14 • Looking ahead to the first half of 2025, Wajax continues to see strong customer demand in the mining and energy sectors, with the former supported by strong backlog1 • Headwinds are expected, with broader market conditions remaining soft and uncertainty surrounding potential tariffs and counter-tariffs on Canada-U.S. trade; additional headwinds are expected should such tariffs materialize • Amid this backdrop, management remains committed to executing the Corporation’s six strategic priorities, which will continue to support and position the business for future success, and which have been refined for 2025 • As additional focus areas, management will execute initiatives to reduce inventory, improve margins and lower costs OUTLOOK Together We Get More Done. Wajax Financial Results - Q4 2024 (March 4, 2025)
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APPENDIX 1 Together We Get More Done.
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1. This measure does not have a standardized meaning prescribed by GAAP. Please see Wajax’s Management’s Discussion and Analysis for the three and twelve months ended December 31, 2024 under the heading “Non-GAAP and Other Financial Measures”, which is available on SEDAR+ at www.sedarplus.ca, for definitions of these measures and reconciliations to the most directly comparable GAAP measures. 2. See the Fourth Quarter Consolidated Results section of the Q4 2024 Management’s Discussion and Analysis. 3. Total Recordable Incident Frequency (“TRIF”) measures the company’s injury frequency. This is calculated as the total number of recordable incidents times 200,000 hours of work divided by the actual number of hours worked. A recordable incident is one that requires medical treatment beyond first aid. 4. Category values contain equipment sales and rental, parts and related services, where applicable. ENDNOTES 16 Together We Get More Done. Wajax Financial Results - Q4 2024 (March 4, 2025)
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wajax.com Together We Get More Done.