Uni-Select announced the appointment of Brent Windom as President and Chief Operating Officer for its U.S. automotive business effective July 31.
Windom has been with Uni-Select for nine years and was most recently Senior Vice President, Sales and Marketing, U.S. Automotive. Prior to August 2012, he was responsible for sales and marketing across North America.
With nearly 30 years in the automotive aftermarket, Windom had served as Vice President of Marketing and Merchandising for MAWDI from 1994 to 2004, when it was sold to Uni-Select.
The Board of Directors also announced the appointment of a new director. Effective July 31, Dennis Welvaert was appointed to replace Joseph P. Felicelli, who resigned in the second quarter.
Welvaert, who was Acting President and Chief Operating Officer for the U.S. Automotive business up to July 31, 2013, will also act as Chairman of Uni-Select USA Inc. His main responsibility will be to monitor and ensure the execution of the company’s Action Plan.
Welvaert retired as President of Dayco North American Aftermarket Division in 2011. He is Chairman of the Global Automotive Aftermarket Symposium and is former Chairman of the Automotive Aftermarket Suppliers Association (AASA).
With Dayco, Welvaert held senior executive-level positions in the OEM, industrial and aftermarket divisions. He has more than 40 years of experience in the automotive industry.
Uni-Select made the announcements when discussing their second quarter results.
Uni-Select Inc. generated sales of $476.2 million in the second quarter of 2013, similar to the comparable period of 2012, an overall organic growth of 1.2%. Sales of the U.S. operations totaled $339.5 million in the second quarter, with an organic sales growth of 2.7%. The positive organic growth is the result of sales’ programs and overall better execution combined with improved service level in the operations permitted by a more stable ERP system.
As a result of store closures, sales decreased by 1.6%. Store closures are related to the internal strategic and operational plan (the “Action Plan”) announced on July 11, 2013. Sales from the Canadian operations totaled $136.6 million compared to $139.4 million in the second quarter of 2012, including a negative organic growth of 2.5%.
The adjusted EBITDA margin stood at 6.2% for the second quarter of 2013 compared to 6.5% for the same quarter of 2012. The decline is mainly attributable to lower gross profit reflecting competitive pricing, negative distribution channel mix and unexpected costs to stabilize the ERP system. The Action Plan announced July 11th partly offset the decline in gross margins recorded in the quarter, the company said. Savings were mostly derived from closure of locations that were not profitable, as well as reductions in headcount and operational expenses.
The corporation, as part of its Action Plan, recognized restructuring charges, write-off and others of $35.2 million in the second quarter. These charges are related to liquidation of redundant inventory, site closures, consolidation costs, employee termination benefits, recognition of future lease obligations, write-down of certain property and equipment to their net realizable value and write-off in the value of certain software, which will no longer be used.
"We are pleased that sales organically grew in the U.S. We are confident that our recent performance in the U.S., together with our new Action Plan will lead to improved results over the next quarters" says Richard G. Roy, President and CEO of Uni-Select.
"We are progressing in a solid industry that offers growth opportunities. We believe in our ability to meet expectations and generate beneficial value to all stakeholders. We remain committed to achieving previously stated goals such as the reduction of indebtedness and carrying out our sales strategy to diversify our market, increase market share and pursue our development."
During the quarter, the corporation announced the completion of its formal strategic review process and the optimization of its distribution network in the U.S. The Action Plan derived from this in-depth analysis is in progress, and completion is expected in late 2014. As of June 30, 2013, 11 stores and 1 warehouse were closed. The relocation of the U.S. national distribution center is completed and 156 positions were eliminated. These initiatives reduced expenses by approximately $10 million, on an annual basis, of which $5 million will positively affect 2013 results.
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