Q3 2024 Wajax Corp Earnings Call Transcript
Key Points
- Wajax Corp (WJXFF) has a strong operational history with 166 years in Canada and operates across 116 branches with over 3,100 employees.
- The company has a diversified revenue stream with heavy equipment categories and industrial parts making up 55% and 45% of total revenue, respectively.
- Wajax Corp (WJXFF) has implemented cost-saving initiatives, resulting in a decrease in selling and administrative expenses by $5 million or 6.6% compared to the previous year.
- The company reported an increase in equipment sales, particularly in the construction and forestry categories in Western and Eastern Canada.
- Wajax Corp (WJXFF) has a significant backlog of $588.1 million, indicating strong future demand, particularly in construction, forestry, and mining sectors.
- Revenue decreased by $28.7 million or 5.6% in the third quarter, primarily due to lower mining equipment sales and softer market conditions.
- Gross profit margin declined by 300 basis points to 19.2%, driven by a higher proportion of equipment sales and increased market pressures.
- Adjusted EBITDA decreased by $12.6 million or 25.3% from the third quarter of 2023, reflecting lower sales volumes and gross profit margins.
- The company's leverage ratio increased to 2.78 times, outside the target range of 1.5 to 2 times, due to higher debt levels and lower earnings.
- Wajax Corp (WJXFF) faces increased competitive pressures in industrial parts and product support, impacting margins and sales.
2024 3rd quarter. Financial results webcast on today's webcast will be Mr Iggy Domalski, President and Chief Executive Officer, Mr Stewart, Chief Financial Officer and Miss Tanya Cassado 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 Tanya Casino.
Thank you operator. Good afternoon and thank you for participating in our third quarter results call this afternoon. We will be following a webcast which includes a summary presentation of Wajax Q3 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-GAAP and other financial measures on slide three.
Please turn to slide 4 and at this point, I'll turn
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