Mr. Iggy Domagalski reports

WAJAX ANNOUNCES 2023 FOURTH QUARTER AND ANNUAL RESULTS, INCREASES QUARTERLY DIVIDEND BY 6%

Wajax Corp. has released its fourth quarter 2023 and 2023 annual results.

Selected highlights for the fourth quarter and full year:

• Fourth quarter revenue of $542.6-million and record full-year revenue of $2,154.7-million, up 0.2 per cent and 9.8 per cent, respectively, over 2022;
• Fourth quarter adjusted earnings before interest, taxes, depreciation and amortization of $47.2-million and record full-year adjusted EBITDA of $197.4-million, up 11.5 per cent and 19.0 per cent, respectively, over 2022;
• Fourth quarter adjusted basic earnings per share of 83 cents and full-year adjusted basic EPS of $3.88, down 0.4 per cent and up 19.1 per cent, respectively, over 2022;
• Ended 2023 with backlog of $554.0-million, an increase of $85.2-million over 2022.

"In 2023, Wajax celebrated its 165th anniversary and delivered a third straight year of record revenue, up 9.8 per cent over 2022. When combined with our continuing focus on improved operating leverage, this resulted in a 19.1-per-cent year-over-year increase in adjusted basic earnings per share," said Iggy Domagalski, president and chief executive officer. "Our team delivered significant value to shareholders, including a 32-per-cent increase in the quarterly dividend. We are pleased with these results and proud of our team's exceptional efforts throughout the year."

He continued: "Looking ahead into 2024, fundamentals remain solid across many of our key markets, which continues to be reflected in our strong backlog, and these fundamentals should be supportive as we look to build on the near-record number of Hitachi excavators we shipped in 2023, as well as the exceptionally strong performance of our industrial parts and engineered repair services businesses. Our strong financial results and solid balance sheet, coupled with the recently completed $100.0-million increase in credit limit under our senior secured credit facility, give us the flexibility to continue to invest in future organic growth and acquisitions. The 6-per-cent dividend increase announced today reflects the board's and management's collective belief in our strategic vision."

Outlook

Moving into 2024, Wajax 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 customer budgeting for capital projects. Wajax began 2024 with strong backlog of $554.0-million, up 18.2 per cent from the end of 2022, which supports management's confidence in the near-term future. In addition to expected growth in its heavy equipment business over the long term, Wajax continues to anticipate further demand in its less cyclical industrial parts and engineered repair services businesses, which saw top-line growth of 12.9 per cent and 28.6 per cent, respectively, in 2023. Challenges associated with higher interest rates, wage and price inflation, and a tight labour market are expected to persist, and management continues to monitor market dynamics and customer sentiment for signs of possible weakness.

Management will be focused on six strategic priorities for 2024: continuing to build a people-first company; expanding Wajax's existing business with a focus on parts, service and margin improvement; unlocking the potential of Wajax's enhanced direct relationship with Hitachi; acquiring industrial parts and ERS businesses; improving cost structure and processes; and continuing Wajax's enterprise resource planning system rollout and additional technology improvements. For more information regarding these priorities, please see the Wajax's management's discussion and analysis for the year ended Dec. 31, 2023, and annual report for the year ended Dec. 31, 2023.

Dividend increase

Wajax also announced today that its board of directors has approved a 6-per-cent increase in the corporation's quarterly dividend. The corporation has declared a dividend of 35 cents per share for the first quarter of 2024, payable on April 2, 2024, to shareholders of record on March 15, 2024.

Conference call details

Wajax will webcast its fourth quarter financial results conference call. You are invited to listen to the live webcast on Tuesday, March 5, 2024, at 2 p.m. EDT. To listen to the webcast, please visit the Wajax website under investor relations, events and presentations, Q4 and full-year 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.

We seek Safe Harbor.