TMX group

BOUCHERVILLE, QUEBEC--(Marketwire - May 8, 2012) - Uni-Select Inc. (TSX:UNS) generated sales of 450.7 million dollars in the first quarter of 2012, compared to 396.8 million dollars in the same period of 2011. EBITDA improved from 21.7 million dollars in the first quarter 2011 to 24.6 million dollars this quarter. Net earnings increased to 11.2 million dollars in the first quarter of 2012 or $0.52 per share compared to 9.7 million dollars or $0.45 per share for the same quarter last year.

(Unless otherwise indicated, all amounts in this press release are expressed in US dollars.)

(In thousands of dollars, except earnings per share)	1 ST QUARTER
	2012	2011
Sales	450,728	396,784
Adjusted EBITDA	27,315	23,139
EBITDA	24,621	21,700
Adjusted earnings	12,961	11,347
Net earnings	11,231	9,662
Adjusted earnings per share	0.60	0.53
Earnings per share	0.52	0.45

The increase in total sales stems primarily from the addition of FinishMaster's operations and the acquisition of store operations in Florida in the fourth quarter 2011 combined with organic growth of 4.2%. The Canadian operations, with sales amounting to 115.7 million dollars, recorded organic sales growth of 1.5% during the first quarter. The American operations recorded organic sales growth of 5.2% to reach 335.0 million dollars.

The adjusted EBITDA margin was 6.1% in the first quarter of 2012, an increase of 0.3% compared to the same quarter in 2011. The improvement was mainly due to gross margin increases derived from better buying conditions and proactive management of selling prices. Moreover, the marginal contribution resulting from organic growth and acquisitions completed in 2011, combined with synergies achieved, contributed to decrease the proportion of fixed costs as a percentage of sales. Higher IT maintenance costs related to the transition to the integrated enterprise resource planning system combined with an unfavorable distribution channels mix negatively impacted the adjusted EBITDA margin partially offsetting the above factors.

"This quarter, we posted improved results in terms of sales, EBITDA and net earnings. The addition of FinishMaster and the acquired Florida assets teamed with a satisfactory increase in organic sales positively contributed to our growth." said Mr. Richard G. Roy, President and Chief Executive Officer of Uni-Select.

"During the next quarters, our focus will remain on the increased efficiency of our operations with the objectives to continue delivering improved results and reduce our debt to the level that our investors and shareholders are accustomed to. We will also pursue the integration of FinishMaster's activities as well as the assets recently acquired in Florida. We are very pleased with the deployment of the enterprise resource planning system which will continue during the year. " added Mr. Roy.

In closing, the Board of Directors of Uni-Select declared a dividend of CDN$0.13 per share payable on July 20, 2012 to shareholders of record on June 30, 2012. This dividend is an eligible dividend for tax purposes.

About Uni-Select

Founded in 1968, Uni-Select is a major distributor of replacement parts, equipment, tools and accessories for motor vehicles in North America. Leader in the Canadian industry, Uni-Select is the 6^th largest distributor in the United States and the leader independent distributor of automotive paint and related products in the country. With 6,600 employees, the Uni-Select network includes over 2,500 independent jobbers and services more than 3,500 points of sale in North America. Uni-Select is headquartered in Boucherville and its shares are traded on the Toronto Stock Exchange (TSX) under the symbol UNS.

The information provided in this press release includes some forward-looking information which includes certain risks and uncertainties, which may cause the final results to be significantly different from those listed or implied within this news release. For additional information with respect to risks and uncertainties, refer to the Annual Report filed by Uni-Select with the Canadian securities commissions. The forward-looking information contained herein is made as of the date of this press release, and Uni-Select does not undertake to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws.

The following terms do not have any standardized meaning according to the International Financial Reporting Standards (IFRS). As a result, they are therefore unlikely to be comparable to similar measures presented by other corporations.

1. "EBITDA": This measurement represents operating income before depreciation, amortization, finance costs, acquisition related costs, income taxes, gains on disposal of fixed assets and non-controlling interest. This measurement is a widely accepted financial indicator of a corporation's ability to service and incur debt. It should not be considered by an investor as an alternative to operating income or net earnings, as an indicator of operating performance or cash flows, or as a measurement of liquidity, but as additional information. In the Corporation's statement of earnings, EBITDA corresponds to "Earnings before the following items."

2. "Adjusted EBITDA": This measurement corresponds to EBITDA resulting from operational activities, excluding some adjustments. According to management, adjusted EBITDA is more representative of the Corporation's operational performance and more appropriate in providing additional information to investors because it gives an indication of the Corporation's ability to repay its debts.

3. "Adjustments": These are unusual incurred costs that Management regards as not being characteristic or representative of the Corporation's regular operations. They include the following costs: those incurred when disposing of or closing stores, non-capitalizable costs related to the implementation of the enterprise resource planning software and costs related to the reorganisation of the distribution network. Excluding these items does not mean that they are not recurrent.

Additional Information

The management report and the unaudited financial statements as well as accompanying notes for the First Quarter of 2012 are available in the "Investor Information" section on the Corporation's website at: www.uniselect.com as well as on SEDAR's: www.sedar.com. The reader will also find on these websites the Corporation's Annual Report as well as other information related to Uni-Select, including its Annual Information Form.

Annual General and Special Meeting of Shareholders

Thursday, May 8, 2012 at 1:30 PM (EST), Uni-Select will host its Annual General and Special Meeting of Shareholders. The meeting will be held at Marriott Château Champlain (One, Place du Canada, Montréal) in the Caf'Conc room.

Conference Call

Thursday, May 8, 2012 at 3:30 PM (EST), Uni-Select will host a conference call to discuss the 2012 First Quarter financial results. To join the conference, dial 1 866 696-5910 followed by 8567461.

UNI-SELECT INC.

CONSOLIDATED STATEMENT OF EARNINGS

(In thousands of US dollars, except per share amounts, unaudited

		Three-month period ended March 31,
		2012		2011
		$		$
Sales		450,728		396,784
Earnings before the following items		24,621		21,700
Finance costs, net (Note 3)		4,826		4,528
Depreciation and amortization (Note 4)		6,059		4,949
Net gain on disposal of property and equipment		-		(1,728	)
Acquisition-related costs (Note 5)		-		2,976
Earnings before income taxes		13,736		10,975
Income taxes (Note 7)
	Current	8,211		8,744
	Deferred	(5,615	)	(7,271	)
		2,596		1,473
Net earnings		11,140		9,502
Attributable to shareholders		11,231		9,662
Attributable to non-controlling interests		(91	)	(160	)
		11,140		9,502
Earnings per share, basic and diluted (Note 6)		0.52		0.45
Weighted average number of shares outstanding (in thousands) (Note 6)
	Basic	21,636		21,559
	Diluted	21,637		21,568
The Consolidated Statement of Earnings by nature is presented in Note 12.

The accompanying notes are an integral part of the Interim Consolidated Financial Statements.

UNI-SELECT INC.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands of US dollars, unaudited)

		Three-month period ended March 31,
		2012		2011
		$		$
Net earnings		11,140		9,502
Other comprehensive income
	Effective portion of changes in fair value of cash flow hedges (net of income taxes of $100 ($(19) in 2011))	(271	)	(52	)
	Net change in fair value of derivative financial instruments designated as cash flow hedges transferred to earnings (net of income taxes of $180 ($234 in 2011))	483		633
		212		581
	Unrealized exchange losses on the translation of financial statements to the presentation currency	(4,467	)	(404	)
	Unrealized exchange gains on the translation of debt designated as a hedge of net investments in foreign operations	5,999		7,804
	Defined benefit plan actuarial gain (net of income taxes of $157)	426		-
Other comprehensive income		2,170		7,981
Comprehensive income		13,310		17,483
Attributable to shareholders		13,401		17,643
Attributable to non-controlling interests		(91	)	(160	)
		13,310		17,483

The accompanying notes are an integral part of the Interim Consolidated Financial Statements.

UNI-SELECT INC.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(In thousands of US dollars, unaudited)

		Attributable to shareholders
			Share capital		Accumulated other comprehensive income (Note 8)	Equity component of convertible debentures and contributed surplus		Retained earnings		Attributable to non-controlling interests (Note 5)		Total equity
			$		$	$		$		$		$
Balance at December 31, 2011			88,940		6,216	2,139		375,262		1,033		473,590
Net earnings			-		-	-		11,231		(91	)	11,140
Other comprehensive income			-		1,744	-		426		-		2,170
Total comprehensive income			-		1,744	-		11,657		(91	)	13,310
Contributions by and distributions to shareholders
	Share redemptions		(3	)	-	-		(10	)	-		(13	)
	Dividends		-		-	-		(2,832	)	-		(2,832	)
	Stock-based compensation expense		-		-	10		-		-		10
			(3	)	-	10		(2,842	)	-		(2,835	)
Changes in ownership interests in subsidiaries that do not result in a loss of control
	Buy-back of non-controlling interests		-		-	(98	)	-		(1,053	)	(1,151	)
	Foreign exchange translation adjustment on non-controlling interests		-		-	-		-		111		111
Balance at March 31, 2012			88,937		7,960	2,051		384,077		-		483,025
Balance at December 31, 2010			39,099		4,700	375		337,795		2,623		384,592
Net earnings			-		-	-		9,662		(160	)	9,502
Other comprehensive income			-		7,981	-		-		-		7,981
Total comprehensive income			-		7,981	-		9,662		(160	)	17,483
Contributions by and distributions to shareholders
	Share issuances		49,980		-	-		-		-		49,980
	Issuance of convertible debentures		-		-	2,418		-		-		2,418
	Dividends		-		-	-		(2,664	)	-		(2,664	)
	Stock-based compensation expense		-		-	19		-		-		19
			49,980		-	2,437		(2,664	)	-		49,753
Changes in ownership interests in subsidiaries that do not result in a loss of control
	Foreign exchange translation adjustment on non-controlling interests		-		-	-		-		78		78
Balance at March 31, 2011			89,079		12,681	2,812		344,793		2,541		451,906

The accompanying notes are an integral part of the Interim Consolidated Financial Statements.

UNI-SELECT INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(In thousands of US dollars, unaudited)

		Three-month period ended March 31,
		2012		2011
		$		$
OPERATING ACTIVITIES
Net earnings		11,140		9,502
Non-cash items
	Depreciation and amortization (Note 4)	6,059		4,949
	Income tax expense (Note 7)	2,596		1,473
	Finance costs, net (Note 3)	4,826		4,528
	Net gain on disposal of property and equipment	-		(1,728	)
	Other non-cash items	647		111
Changes in working capital items		(14,024	)	(61,272	)
Interest paid		(5,818	)	(3,157	)
Income taxes paid		(2,119	)	(8,478	)
Cash flows from operating activities		3,307		(54,072	)
INVESTING ACTIVITIES
Business acquisitions (Note 5)		(1,570	)	(222,765	)
Balance of purchase or sale price		(364	)	37
Advances to merchant members		(2,680	)	(2,771	)
Receipts on investments and advances to merchant members		1,446		910
Acquisitions of property and equipment		(1,269	)	(3,173	)
Disposals of property and equipment		122		1,410
Development of intangible assets		(5,099	)	(7,187	)
Cash flows from investing activities		(9,414	)	(233,539	)
FINANCING ACTIVITIES
Net increase (decrease) in bank indebtedness		3		(866	)
Increase in long-term debt		21,230		362,335
Repayment of long-term debt		(12,453	)	(171,039	)
Merchant members' deposits in the guarantee fund		(132	)	98
Issuance of convertible debentures, net of issuance costs		-		49,777
Share issuances, net of issuance costs		-		49,361
Share redemptions		(13	)	-
Dividends paid		(2,616	)	(2,296	)
Cash flows from financing activities		6,019		287,370
Effects of fluctuations in exchange rates on cash		31		2
Decrease in cash		(57	)	(239	)
Cash, beginning of period		1,671		379
Cash, end of period		1,614		140

The accompanying notes are an integral part of the Interim Consolidated Financial Statements.

UNI-SELECT INC.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(In thousands of US dollars, unaudited)

		March 31, 2012	December 31, 2011
		$	$
ASSETS
Current assets
	Cash	1,614	1,671
	Trade and other receivables	213,897	198,495
	Income taxes receivable	18,877	25,234
	Inventory	561,594	579,246
	Prepaid expenses	11,399	11,358
	Total current assets	807,381	816,004
Investments and advances to merchant members		23,216	22,149
Property and equipment		43,528	43,134
Intangible assets		157,531	156,958
Goodwill		186,456	184,734
Deferred tax assets		24,039	24,242
TOTAL ASSETS		1,242,151	1,247,221
LIABILITIES
Current liabilities
	Bank indebtedness	509	497
	Trade and other payables and provisions	280,068	298,686
	Dividends payable	2,816	2,552
	Instalments on long-term debt and on merchant members' deposits in the guarantee fund	17,690	15,694
	Total current liabilities	301,083	317,429
Long-term employee benefit obligations		26,208	27,319
Long-term debt		345,284	337,319
Convertible debentures		48,329	47,225
Merchant members' deposits in the guarantee fund		7,770	7,757
Derivative financial instruments		2,212	2,505
Deferred tax liabilities		28,240	34,077
TOTAL LIABILITIES		759,126	773,631
EQUITY
Share capital		88,937	88,940
Contributed surplus		364	452
Equity component of convertible debentures		1,687	1,687
Retained earnings		384,077	375,262
Accumulated other comprehensive income (Note 8)		7,960	6,216
TOTAL SHAREHOLDERS' EQUITY		483,025	472,557
Non-controlling interests		-	1,033
TOTAL EQUITY		483,025	473,590
TOTAL LIABILITIES AND EQUITY		1,242,151	1,247,221
The accompanying notes are an integral part of the Interim Consolidated Financial Statements.