Q2 2024 Wajax Corp Earnings Call Transcript
Key Points
- Wajax Corp (WJXFF) reported an increase in gross profit margin to 20.9% in Q2 2024, up from 19.9% in the same period of 2023.
- The company successfully rolled out a new ERP system to 99 branch locations, representing approximately 90% of 2023 annual revenue.
- Eastern Canada saw an 8.3% increase in sales, driven by higher equipment sales in construction and forestry and increased power systems sales.
- Wajax Corp (WJXFF) has a strong M&A pipeline, indicating ongoing strategic growth opportunities.
- The company has secured orders for eight large mining shovels, with deliveries scheduled through 2025, indicating a strong backlog in the mining sector.
- Revenue decreased by 3.1% in Q2 2024 compared to the same quarter in 2023, primarily due to lower sales in Western and Central Canada.
- Adjusted EBITDA decreased by 4.3% from the second quarter of 2023, impacted by lower sales volumes and higher personnel expenses.
- Selling and administrative expenses increased to 14.4% of revenue in Q2 2024, up from 12.8% in Q2 2023, due to higher personnel costs.
- The company's backlog decreased by 7.2% compared to Q1 2024, primarily due to lower orders in construction, forestry, and ERS.
- Industrial parts and ERS sales were soft in Q2, with declines in Central and Eastern Canada, reflecting broader market challenges.
Thank you for attending Wajax Corporation's 2024 second-quarter financial results webcast. On today's webcast will be Mr. Iggy Domagalski, President and Chief Executive Officer; Mr. Stuart Auld, Chief Financial Officer; and Ms. Tania Casadinho, VP, Corporate Controller.
Please be advised that this webcast is being recorded. Please note, that this webcast contains forward-looking statements. Actual future results may differ from expected results.
I will now turn the call over to Tania Casadinho. Please go ahead.
Thank you, operator. Good afternoon, and thank you for participating in our second-quarter results call. This afternoon, we will be following a webcast, which includes a summary presentation of Wajax's Q2 2024 financial results. The presentation can be found on our website under Investor Relations, Events and Presentations.
To begin, I would like to draw your attention to our cautionary statement regarding forward-looking information on slide 2 and the non
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