BOUCHERVILLE, Quebec — Uni-Select reported sales of $359 million for the second quarter of 2010, compared to $384 million in 2009.

Sales recorded an organic growth of 2.2 percent during the quarter. The conversion of the results in Canadian dollars reduced sales by $29.1 million as a consequence of the increased value of the Canadian dollar while the sale and closure of corporate stores during the previous quarters decreased sales by $5 million.

Net earnings were $14.7 million in the second quarter of 2010 or 75 cents per share compared to $15.4 million or 78 cents per share a year prior. It is, however, notable that the exchange rate variation had a negative impact of almost $1.1 million or 5 cents per share on results for the quarter; excluding this item, results for the quarter would have exceeded those of 2009.

Year-to-date, sales were $666 million compared to $735 in 2009. Uni-Select sales recorded an increase in organic growth of 1.5 percent, whereas the conversion of the results in Canadian dollars reduced sales by almost $70 million for the period. Net earnings were $22.3 million or $1.13 per share compared to net earnings of $23.4 million or $1.19 per share in the first six months of 2009.

The fluctuation of the U.S. dollar had a $2.1 million negative impact on results for the period or more than 10 cents per share.

Sales for the U.S. operations reached $216 million in the second quarter compared to $242 million in the second quarter of 2009. Excluding the effects of the foreign exchange variation, U.S. operations benefited from an increase in organic growth of 2.7 percent in the second quarter. Year-to-date, sales were $409 million compared to $474 million a year earlier. Excluding the effects of the foreign exchange, organic growth was 1.8 percent.

The Canadian operations enjoyed an organic growth on sales of 1.5 percent, which was offset by the effect on sales resulting from the disposal of 10 stores in 2009. Sales were $143 million, being an amount comparable to that of 2009. Year-to-date, sales were $256 million compared to $260 million a year earlier.

"The enlistment of new distributors, the broadening of the scope of our clientele, together with our proactive inventory management strategy to meet the needs of our clients, contributed to the organic growth recorded since the start of the quarter. We continue to cater to the needs of our clients in order to better serve them and pursue our organic growth," said Richard G. Roy, president and CEO of Uni- Select. "Furthermore, management is confident that, following the unfolding of various growth, cost and asset control strategies, profitability will continue to improve in the short and long terms. We will continue to make every effort to find opportunities which will allow us to grow both in Canada and the U.S. Our efforts are focused on the pursuit of our growth by acquisitions in the US where there are development opportunities due to the relative fragmentation of the market."
 
In closing, the Board of Directors of Uni-Select Inc. declared a quarterly dividend (eligible dividend) of $0.1165 per common share payable on October 19, 2010, to shareholders of record as at Sept. 30, 2010.

Unless otherwise indicated, all amounts specified in this release are in Canadian dollars.