Mr. Iggy Domagalski reports

WAJAX ANNOUNCES 2023 FIRST QUARTER RESULTS

Wajax Corp. has released its first quarter 2023 results.

Selected highlights for the first quarter:

• First quarter revenue of $516.1-million, up 17.4 per cent over 2022;
• First quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $43.0-million, up 9.5 per cent over 2022 (1);
• First quarter adjusted net earnings of $17.8-million, up 13.2 per cent over 2022 (1);
• Ended the quarter with backlog of $530.8-million, up 13.2 per cent from Dec. 31, 2022 (1).

"Our improved top-line performance this quarter was driven by strong customer demand across all regions, including continued positive momentum in Central Canada," said Iggy Domagalski, president and chief executive officer. "Solid year-over-year growth in equipment sales was complemented by even stronger year-over-year growth in industrial parts and engineered repair services revenue, and we saw adjusted diluted earnings per share grow 13.1 per cent to 80 cents. Our robust backlog, largely in line with the same period last year and up 13.2 per cent sequentially from the fourth quarter, as well as solid fundamentals across many of our key markets, supports management's confidence in our prospects as we advance further into 2023 (1).

"Our leverage ratio increased to 1.74 times as a result of investments in working capital, most notably in inventory, to support customer orders and demand. We continue to believe that our strong financial results and balance sheet give us the flexibility to further invest in our expanded Hitachi relationship, additional organic initiatives and acquisition opportunities to help drive future growth (1)."

Outlook

After the first three months of 2023, the corporation continues to see solid fundamentals in many of the markets it serves -- particularly mining, energy and construction -- supported by relatively elevated key commodity prices and sustained budgeting for capital projects. The corporation's strong backlog also continues to support management's confidence as Wajax advances further into the year. In addition to expected growth in its heavy equipment business, Wajax anticipates further strong demand in its less cyclical industrial parts and engineered repair services businesses. Wajax continues to expect the challenges of 2023 to be similar to those of 2022 -- continuing supply chain volatility, higher interest rates, inflation and a tight labour market (1).

The corporation's core strategic priorities remain unchanged, and Wajax is focused on continuing to invest in its people and their over all health and well-being, delivering exceptional customer value, organically expanding its business, transacting on a robust acquisition pipeline, leveraging its enhanced relationship with Hitachi, prudently managing its balance sheet, deploying its ERP system, and entrenching sustainability into the business.

Dividend

The corporation has declared a dividend of 33 cents per share for the second quarter of 2023, payable on July 5, 2023, to shareholders of record on June 15, 2023.

Conference call details

Wajax will webcast its first quarter financial results conference call. You are invited to listen to the live webcast on Tuesday, May 2, 2023, at 2 p.m. EDT. To listen to the webcast, please visit the Wajax website under investor relations, events and presentations, Q1 2023 financial results, and click on the webcast link. An archive of the webcast will be available following the live presentation.

About Wajax Corp.

Founded in 1858, Wajax (Toronto Stock Exchange: WJX) is one of Canada's longest-standing and most diversified industrial product and service 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 product and service 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.

Note

(1) Adjusted net earnings, adjusted basic and diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, backlog, leverage ratio, senior secured leverage ratio, working capital, gross profit margin, selling and administrative expenses as a percentage of revenue and pro forma adjusted EBITDA do not have standardized meanings prescribed by generally accepted accounting principles.

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