TSX Symbol: WJX
TORONTO, August 4,
2022 /CNW/ - Wajax Corporation ("Wajax" or the
"Corporation") today announced its 2022 second quarter
results.
In commenting on the Corporation's performance, Iggy Domagalski, President and Chief Executive
Officer, stated "We had an excellent quarter, delivering strong
revenue of $511.2 million, an
increase of 14.6% year-over-year. We saw improved gross profit
margins of 20.1%, resulting from stronger equipment and product
support margins. Our quarter-end leverage ratio of 1.10 times is
well below our 1.5 - 2.0 times target range due to lower debt
levels and strong business performance, providing us with ample
capacity to pursue our acquisition programs. Cash flow from
operations continues to be robust, which has allowed us to make
early repayment of our acquisition credit facility and fund a
second tuck-in acquisition this year. We continue to see strength
in our backlog which ended the quarter at $534.8 million. We are very pleased with these
results and the continued strong performance of the business, and
we look forward to continuing our focus on growth and delivering an
excellent experience for our customers and
employees."(2)
(Dollars in
millions, except per share data)
|
Three Months
Ended
June 30
|
Six Months
Ended
June 30
|
|
2022
|
2021
|
2022
|
2021
|
CONSOLIDATED
RESULTS
|
|
|
|
|
Revenue
|
$511.2
|
$446.1
|
$950.7
|
$833.2
|
Equipment
sales
|
$172.2
|
$141.1
|
$289.4
|
$259.7
|
Product
support
|
$122.2
|
$113.4
|
$246.8
|
$220.6
|
Industrial
parts
|
$133.9
|
$114.3
|
$263.1
|
$218.3
|
Engineered repair
services
|
$73.0
|
$68.4
|
$132.8
|
$117.7
|
Equipment
rental
|
$9.9
|
$8.9
|
$18.6
|
$16.8
|
|
|
|
|
|
Net
earnings
|
$21.7
|
$18.1
|
$37.8
|
$30.6
|
Basic earnings per
share(1)
|
$1.01
|
$0.85
|
$1.76
|
$1.44
|
|
|
|
|
|
Adjusted net
earnings(2)(3)
|
$19.7
|
$16.6
|
$35.4
|
$29.0
|
Adjusted basic
earnings per share(1)(2)(3)
|
$0.92
|
$0.77
|
$1.65
|
$1.36
|
Mr. Domagalski continued, "Wajax had an excellent first half of
2022, with revenues of $950.7 million
and adjusted EBITDA of $84.5 million.
The business has performed well, with strong industrial parts
sales, as well as strong equipment sales, especially in the
construction and forestry category, due in part to our new direct
relationship with Hitachi."(2)
Regarding Wajax's outlook for the remainder of the year, Mr.
Domagalski stated, "As we move into the second half of 2022, we
continue to see sound fundamentals in many of our key markets,
bolstered by strong commodity prices and capital spending. This
positive view of the market is counterbalanced primarily by rising
interest rates and supply chain issues, which we expect will be a
factor throughout the year ahead, particularly in our heavy
equipment business. Wajax continues to manage these challenges
through frequent dialogue with key suppliers and customers,
pre-ordering new equipment, and utilizing repairs and rebuilds to
extend the service life of equipment."
Mr. Domagalski continued, "Despite these issues, Wajax's
improved balance sheet and strong quarter end backlog of
$534.8 million continues to show
momentum in the business. To maintain this momentum and increase
shareholder value, we plan to continue our focus on the following
priorities: investing in our people and their safety, delivering
exceptional customer experiences, organically growing our business,
building our acquisition pipeline, supporting our closer
relationship with Hitachi, prudently managing our balance sheet,
deploying our ERP and remote diagnostic systems, and building
sustainability into the business."(2)
He concluded, "Looking ahead, we believe our strong balance
sheet, ability to generate cash flow, and abundant growth
opportunities will allow our business to grow meaningfully over the
long term."
The Corporation also announced the declaration of a dividend of
$0.25 per share for the third quarter
of 2022 payable on October 4, 2022 to shareholders of record
on September 15, 2022.
Second Quarter
Highlights
- Revenue in the second quarter of 2022 increased $65.1 million, or 14.6%, to $511.2 million, from $446.1 million in the second quarter of 2021.
Regionally:
-
- Revenue in western Canada of
$225.9 million increased 15.7% over
the prior year due to robust construction and forestry
equipment sales, and strength in engineering repair services
("ERS") and industrial parts categories attributable to
strong sales from Tundra Process Solutions Ltd. ("Tundra")
and higher organic bearings sales. Higher product support revenue
across most categories also contributed. These increases were
partially offset by lower mining equipment revenue.
- Revenue in central Canada of
$83.6 million increased 4.0% over the
prior year due primarily to higher industrial parts sales, offset
partially by slightly lower equipment revenue in most
categories.
- Revenue in eastern Canada of
$201.7 million increased 18.4% over
the prior year due primarily to higher equipment revenue in the
construction and forestry and power systems categories, as well as
higher bearings sales driving higher industrial parts revenue.
- Gross profit margin of 20.1% in the second quarter of 2022
increased 0.2% compared to gross profit margin of 19.9% in the same
period of 2021. Excluding the Canada Emergency Wage Subsidy ("CEWS")
recoveries in the second quarter of last year of $0.9 million, gross profit margin in the second
quarter of 2022 increased 0.4% compared to the gross profit margin
of 19.7% in the same period of 2021. The increase in margin was
driven primarily by higher equipment and product support
margins.
- Selling and administrative expenses as a percentage of revenue
decreased to 13.4% in the second quarter of 2022 from 13.5% in the
second quarter of 2021 when excluding the CEWS recoveries of
$1.2 million. When including the CEWS
recoveries, selling and administrative expenses as a percentage of
revenue was 13.2% in the second quarter last year. Selling and
administrative expenses in the second quarter of 2022 increased
$9.8 million compared to the second
quarter of 2021 due mainly to the prior year $1.2 million recovery of personnel expenses from
the CEWS program without a similar recovery in the current year,
and higher personnel costs as the volume of business increased over
the prior year.
- EBIT increased $4.0 million, or
13.4%, to $34.1 million in the second
quarter of 2022 versus $30.1 million
in the same period of 2021.(2) The year-over-year
increase in EBIT is primarily attributable to higher volumes, and
higher equipment and product support margins. These increases were
offset partially by higher selling and administrative expenses and
a prior year recovery of personnel expenses from the CEWS program
without a similar recovery in the current period.
- The Corporation generated net earnings of $21.7 million, or $1.01 per share, in the second quarter of 2022
versus $18.1 million, or $0.85 per share, in the same period of 2021. The
Corporation generated adjusted net earnings of $19.7 million, or $0.92 per share, in the second quarter of 2022
versus $16.6 million, or $0.77 per share, in the same period of
2021.(2)
- Adjusted EBITDA margin remained unchanged at 8.8% in both the
second quarter of 2022 and the second quarter of 2021, excluding
the CEWS recoveries in the second quarter of last year of
$2.1 million.(2) When
including the CEWS recoveries, adjusted EBITDA margin was 9.3% in
the second quarter of last year.(2)
- The Corporation's backlog at June 30,
2022 remained strong at $534.8
million compared to the record backlog of $540.1 million at March
31, 2022.(2) Compared to June 30, 2021, backlog increased $218.1 million, or 68.8%, due to higher orders in
most categories, most notably construction and
forestry.(2)
- Working capital of $307.9 million
at June 30, 2022 decreased
$11.8 million from March 31, 2022 due to higher accounts payable and
higher income taxes payable, offset partially by higher contract
assets, higher inventory and lower contract
liabilities.(2) Trailing four-quarter average working
capital as a percentage of the trailing 12-month sales was 18.1%, a
decrease of 1.1% from March 31, 2022,
due to the combination of the lower four-quarter average working
capital and the higher trailing 12-month sales.(2)
- Cash flows generated from operating activities amounted to
$34.0 million in the second quarter
of 2022, compared to cash flows generated from operating activities
of $36.6 million in the same quarter
of the previous year.
- The Corporation's leverage ratio decreased to 1.10 times at
June 30, 2022, compared to 1.24 times
at March 31, 2022.(2) The
decrease in the leverage ratio was due to the lower debt level in
the current period and a higher trailing 12-month pro-forma
adjusted EBITDA.(2) The Corporation's senior secured
leverage ratio was 0.65 times at June 30,
2022, compared to 0.78 times at March
31, 2022.(2)
- In June 2022, the Corporation
fully repaid its $50.0 million
non-revolving acquisition term credit facility via a drawdown from
its revolving term facility. With the repayment, Wajax's bank
credit facility now has a $400.0
million credit limit as at June 30,
2022, composed of a $50.0
million non-revolving term facility and a $350.0 million revolving term facility. The bank
credit facility matures October 1,
2026.
- Effective June 30, 2022, Tundra,
a wholly owned subsidiary of the Corporation, acquired the net
operating assets of an Alberta-based division of Powell Canada Inc.
("Powell Valve") specializing in valve sales, service and
support. The net operating assets of Powell Valve were acquired for
total cash consideration of $5.4
million, subject to post-closing adjustments. Powell Valve's
trailing twelve-month revenue at the time of acquisition was
approximately $8.8 million.
Wajax Corporation
Founded in 1858, Wajax (TSX: WJX) is one of Canada's longest-standing and most diversified
industrial products and services providers. The Corporation
operates an integrated distribution system providing sales, parts
and services to a broad range of customers in diverse sectors of
the Canadian economy, including: construction, forestry, mining,
industrial and commercial, oil sands, transportation, metal
processing, government and utilities, and oil and gas.
The Corporation's goal is to be Canada's leading industrial products and
services provider, distinguished through its three core
capabilities: sales force excellence, the breadth and efficiency of
repair and maintenance operations, and the ability to work closely
with existing and new vendor partners to constantly expand its
product offering to customers. The Corporation believes that
achieving excellence in these three areas will position it to
create value for its customers, employees, vendors and
shareholders.
Wajax will webcast its Second Quarter Financial Results
Conference Call. You are invited to listen to the live webcast on
Friday, August 5, 2022 at
2:00 p.m. ET. To access the webcast,
please visit our website wajax.com, under "Investor
Relations", "Events and Presentations", "Q2 2022
Financial Results" and click on the "Webcast" link.
Notes:
|
|
|
(1)
|
Weighted average
shares, net of shares held in trust, outstanding for calculation of
basic and diluted earnings per share for the three months ended
June 30, 2022 was 21,424,023 (2021 – 21,409,323) and 22,194,390
(2021 – 22,042,810),respectively.
|
|
Weighted average
shares, net of shares held in trust, outstanding for calculation of
basic and diluted earnings per share for the six months ended June
30, 2022 was 21,419,752 (2021 – 21,245,516) and 22,166,365 (2021 – 21,863,441),
respectively.
|
(2)
|
"Adjusted net
earnings", "Adjusted basic earnings per share", "Adjusted EBITDA",
"Adjusted EBITDA margin", "pro-forma adjusted EBITDA", "backlog",
"leverage ratio" and "senior secured leverage ratio" do not have
standardized meanings prescribed by generally accepted accounting
principles ("GAAP"). "EBIT" and "Working capital" are
additional GAAP measures. See the Non-GAAP and Additional GAAP
Measures section later in this press release and in the Q2 2022
Management's Discussion and Analysis.
|
(3)
|
Net earnings excluding
the following:
|
|
a.
|
after-tax gain recorded
on the sale of properties of nil (2021 – $0.8 million), or basic
and diluted earnings per share of nil (2021 – $0.04) for the three
and six months ended June 30, 2022.
|
|
b.
|
after-tax non-cash
gains on mark to market of derivative instruments of $2.0 million
(2021 – gains of $0.8 million), or basic and diluted earnings per
share of $0.10 and $0.09 respectively (2021 – $0.04) for the three months ended June 30,
2022.
|
|
c.
|
after-tax non-cash
gains on mark to market of derivative instruments of $2.4 million
(2021 – gains of $1.1 million), or basic and diluted earnings per
share of $0.11 (2021 – $0.05) for the six months ended June 30, 2022.
|
|
d.
|
after-tax Tundra
transaction costs of nil (2021 – $0.3 million), or basic and
diluted earnings per share of nil (2021 – $0.01) for the six months
ended June 30, 2022.
|
Non-GAAP and Additional GAAP
Measures
The press release contains certain non-GAAP and additional GAAP
measures that do not have a standardized meaning prescribed by
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 the Corporation's performance.
Non-GAAP financial measures are identified and defined
below:
EBITDA
|
Net earnings (loss)
before finance costs, income tax expense, depreciation and
amortization.
|
|
|
EBITDA
margin
|
Defined as EBITDA
divided by revenue, as presented in the condensed consolidated
interim statements of earnings.
|
|
|
Adjusted net
earnings (loss)
|
Net earnings (loss)
before (gain) loss recorded on the sale of properties, non-cash
losses (gains) on mark to market of derivative instruments and
Tundra transaction costs.
|
|
|
Adjusted basic and
diluted earnings (loss) per share
|
Basic and diluted
earnings (loss) per share before (gain) loss recorded on the sale
of properties, non-cash losses (gains) on mark to market of
derivative instruments and Tundra transaction costs.
|
|
|
Adjusted
EBITDA
|
EBITDA before (gain)
loss recorded on the sale of properties, non-cash losses (gains) on
mark to market of derivative instruments and Tundra transaction
costs.
|
|
|
Adjusted EBITDA
margin
|
Defined as adjusted
EBITDA divided by revenue, as presented in the condensed
consolidated interim statements of earnings.
|
|
|
Pro-forma adjusted
EBITDA
|
Defined as adjusted
EBITDA adjusted for the EBITDA of business acquisitions made during
the period as if they were made at the beginning of the trailing
12-month period pursuant to the terms of the bank credit facility
and the deduction of payments of lease liabilities.
|
|
|
Leverage
ratio
|
The leverage ratio is
defined as debt at the end of a particular quarter divided by
trailing 12-month pro-forma adjusted EBITDA. The Corporation's
objective is to maintain this ratio between 1.5 times and 2.0
times.
|
|
|
Senior secured
leverage ratio
|
The senior secured
leverage ratio is defined as debt excluding debentures at the end
of a particular quarter divided by trailing 12-month pro-forma
adjusted EBITDA.
|
|
|
Backlog
|
Backlog is a management
measure which includes the total sales value of customer purchase
commitments for future delivery or commissioning of equipment,
parts and related services, including ERS projects. This differs
from the remaining performance obligations as defined by IFRS 15
Revenue from Contracts with Customers.
|
|
Additional GAAP
measures are identified and defined below:
|
|
|
Earnings (loss)
before finance costs and income taxes (EBIT)
|
Earnings (loss) before
finance costs and income taxes, as presented in the condensed
consolidated interim statements of earnings.
|
|
|
Earnings (loss)
before income taxes (EBT)
|
Earnings (loss) before
income taxes, as presented in the condensed consolidated interim
statements of earnings.
|
|
|
Working
capital
|
Defined as current
assets less current liabilities, as presented in the condensed
consolidated interim statements of financial position.
|
Reconciliation of the Corporation's net earnings to adjusted net
earnings and adjusted basic and diluted earnings per share is as
follows:
|
Three months
ended
|
Six months
ended
|
|
June
30
|
June
30
|
|
2022
|
2021
|
2022
|
2021
|
Net earnings
|
$
21.7
|
$
18.1
|
$
37.8
|
$
30.6
|
Gain recorded on the
sale of properties, after-tax
|
—
|
(0.8)
|
—
|
(0.8)
|
Non-cash gains on mark
to market of derivative
instruments, after-tax
|
(2.0)
|
(0.8)
|
(2.4)
|
(1.1)
|
Tundra transaction
costs, after-tax
|
—
|
—
|
—
|
0.3
|
Adjusted net
earnings
|
$
19.7
|
$
16.6
|
$
35.4
|
$
29.0
|
Adjusted basic
earnings per share(1)
|
$
0.92
|
$
0.77
|
$
1.65
|
$
1.36
|
Adjusted diluted
earnings per share(1)
|
$
0.89
|
$
0.75
|
$
1.60
|
$
1.33
|
(1)
|
For the three months
ended June 30, 2022, the numbers of basic and diluted shares
outstanding were 21,424,023 and 22,194,390, respectively (2021 –
21,409,323 and 22,042,810, respectively).
|
|
For the six months
ended June 30, 2022, the numbers of basic and diluted shares
outstanding were 21,419,752 and 22,166,365, respectively (2021 –
21,245,516 and 21,863,441, respectively).
|
Reconciliation of the Corporation's net earnings to EBT, EBIT,
EBITDA, Adjusted EBITDA and Pro-forma adjusted EBITDA is as
follows:
|
Three months
ended
|
Six months
ended
|
Twelve months
ended
|
|
June 30
2022
|
June 30
2021
|
June 30
2022
|
June 30
2021
|
June 30
2022
|
March 31
2022
|
December 31
2021
|
Net
earnings
|
$
21.7
|
$ 18.1
|
$
37.8
|
$ 30.6
|
$
60.4
|
$
56.9
|
$
53.2
|
Income tax
expense
|
7.9
|
6.8
|
13.8
|
11.6
|
22.1
|
21.1
|
19.9
|
EBT
|
$
29.6
|
$ 25.0
|
$
51.6
|
$ 42.2
|
$
82.6
|
$
77.9
|
$
73.2
|
Finance
costs
|
4.4
|
5.1
|
8.9
|
10.1
|
17.9
|
18.5
|
19.1
|
EBIT
|
$
34.1
|
$ 30.1
|
$
60.5
|
$ 52.3
|
$
100.5
|
$
96.5
|
$
92.3
|
Depreciation and
amortization
|
13.9
|
13.5
|
27.3
|
26.3
|
56.4
|
56.0
|
55.4
|
EBITDA
|
$
48.0
|
$ 43.6
|
$
87.7
|
$ 78.6
|
$
156.8
|
$
152.4
|
$
147.7
|
Gain recorded on the
sale of properties
|
—
|
(0.9)
|
—
|
(0.9)
|
(1.5)
|
(2.5)
|
(2.5)
|
Non-cash gains on mark
to market of derivative instruments(1)
|
(2.8)
|
(1.1)
|
(3.3)
|
(1.6)
|
(1.7)
|
—
|
—
|
Tundra transaction
costs(2)
|
—
|
—
|
—
|
0.4
|
—
|
—
|
0.4
|
Adjusted
EBITDA
|
$
45.2
|
$ 41.5
|
$
84.5
|
$ 76.5
|
$
153.6
|
$
149.9
|
$
145.6
|
Payment of lease
liabilities(3)
|
(7.9)
|
(7.3)
|
(15.5)
|
(14.1)
|
(30.3)
|
(29.8)
|
(28.9)
|
Pro-forma adjusted
EBITDA
|
$
37.3
|
$ 34.2
|
$
69.0
|
$ 62.4
|
$
123.3
|
$
120.1
|
$
116.7
|
(1)
|
Non-cash gains on mark
to market of non-hedged derivative instruments.
|
(2)
|
In 2021, the
Corporation incurred transaction costs relating to the Tundra
acquisition. These costs were primarily for advisory
services.
|
(3)
|
Effective with the
reporting period beginning on January 1, 2019 and the adoption of
IFRS 16, the Corporation amended the definition of Funded net debt
to exclude lease liabilities not considered part of debt. As a
result, the corresponding lease costs must also be deducted from
EBITDA for the purpose of calculating the leverage
ratio.
|
Calculation of the Corporation's funded net debt, debt, leverage
ratio and senior secured leverage ratio is as follows:
|
June
30 2022
|
March 31
2022
|
December 31
2021
|
Cash
|
$
(3.5)
|
$
(11.4)
|
$
(10.0)
|
Debentures
|
55.5
|
55.4
|
55.2
|
Long-term
debt
|
77.7
|
98.4
|
98.2
|
Funded net
debt
|
$
129.7
|
$
142.3
|
$
143.5
|
Letters of
credit
|
6.3
|
6.3
|
7.3
|
Debt
|
$
135.9
|
$
148.6
|
$
150.7
|
Pro-forma adjusted
EBITDA(1)
|
$
123.3
|
$
120.1
|
$
116.7
|
Leverage
ratio(2)
|
1.10
|
1.24
|
1.29
|
Senior secured
leverage ratio(3)
|
0.65
|
0.78
|
0.82
|
(1)
|
For the twelve months
ended June 30, 2022, March 31, 2022, and December 31,
2021.
|
(2)
|
Calculation uses debt
divided by the trailing four-quarter Pro-forma adjusted EBITDA.
This leverage ratio is calculated for purposes of monitoring the
Corporation's objective target leverage ratio of between
1.5 times and 2.0 times, and is different from the leverage ratio
calculated under the Corporation's bank credit facility
agreement.
|
(3)
|
Calculation uses debt
excluding debentures divided by the trailing four-quarter Pro-forma
adjusted EBITDA. While the calculation contains some differences
from the leverage ratio calculated under the
Corporation's bank credit facility agreement, the resulting
leverage ratio under the bank credit facility agreement is not
significantly different.
|
Cautionary Statement Regarding
Forward-Looking Information
This news release 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 Corporation's future performance. 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 news release 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 news release are made as of the
date of this news release, 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 news release includes forward looking statements
regarding, among other things, our view that, as we move into the
second half of 2022, we are continuing to see sound fundamentals in
many of our key markets, bolstered by strong commodity prices and
capital spending, and that this positive view of the market is
counterbalanced primarily by rising interest rates and supply chain
issues; our expectation that rising interest rates and supply chain
issues will be a factor throughout the year ahead, particularly in
our heavy equipment business, and our plans to continue to manage
these challenges through frequent dialogue with key suppliers and
customers, pre-ordering new equipment, and utilizing repairs and
rebuilds to extend the service life of equipment; our belief that,
despite rising interest rates and supply chain issues, our improved
balance sheet and strong quarter-end backlog continues to show
momentum in our business; our plans to maintain such momentum and
increase shareholder value by focusing on the following priorities:
investing in our people and their safety, delivering exceptional
customer experiences, organically growing our business, building
our acquisition pipeline, supporting our closer relationship with
Hitachi, prudently managing our balance sheet, deploying our ERP
and remote diagnostic systems, and building sustainability into our
business; our belief that our strong balance sheet, ability to
generate cash flow and abundant growth opportunities will allow our
business to grow meaningfully over the long-term; and our goal of
being Canada's leading industrial
products and services provider, distinguished by our sales force
excellence, the breadth and efficiency of our repair and
maintenance operations, and our ability to work closely with
existing and new vendor partners to constantly expand our product
offering to customers, together with our belief that achieving
excellence in these three areas will position us to create value
for our customers, employees, vendors and shareholders. These
statements are based on a number of assumptions which may prove to
be incorrect, including, but not limited to, our ability to
successfully manage our business through the COVID-19 pandemic and
actions taken by governments, public authorities, suppliers and
customers in response to the novel coronavirus and its variants;
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; general business and economic
conditions; the supply and demand for, and the level and volatility
of prices for, oil, natural gas and other commodities; financial
market conditions, including interest rates; our ability to execute
our One Wajax strategy, including our ability to execute on our
organic growth priorities, complete and effectively integrate
acquisitions, and successfully implement new information technology
platforms, systems and software, such as our ERP system; the future
financial performance of the Corporation; our costs; market
competition; our ability to attract and retain skilled staff; our
ability to procure quality products and inventory; and our ongoing
relations 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,
the geographic spread and ultimate impact of the COVID-19 virus and
its variants, and the duration of the coronavirus pandemic; the
duration and severity of travel, business and other restrictions
imposed by governments and public authorities in response to
COVID-19, as well as other measures that may be taken by such
authorities; actions taken by our suppliers and customers in
relation to the COVID-19 pandemic, including slowing, reducing or
halting operations; supply chain disruptions and shortages related
to or arising from the impacts of COVID-19; the inability of
Hitachi and Wajax to develop and execute successful sales,
marketing and other plans related to their expanded direct
distribution relationship; a continued or prolonged deterioration
in general business and economic conditions (including as a result
of the COVID-19 pandemic or armed conflicts between nations);
volatility 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; fluctuations
in financial market conditions, including interest rates; the level
of demand for, and prices of, the products and services we offer;
levels of customer confidence and spending; market acceptance of
the products we offer; 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 (including disruptions caused by the
COVID-19 pandemic), job action and unanticipated events related to
health, safety and environmental matters); our ability to attract
and retain skilled staff and our ability to maintain our
relationships with 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 Annual Information Form for the year ended
December 31, 2021 (the "AIF"),
in our annual MD&A for financial risks, and in our most recent
quarterly MD&A, all of which have been filed on SEDAR. The
forward-looking statements contained in this news release 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 AIF, and
in our annual and quarterly MD&A, are not the only risks that
could impact the Corporation. We cannot accurately predict the full
impact that COVID-19 will have on our business, results of
operations, financial condition or the demand for our products and
services due to the uncertainties related to the spread of the
virus and its variants. 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.
Additional information, including Wajax's Annual Report, is
available on SEDAR at www.sedar.com.
SOURCE Wajax Corporation