Commercial Solutions Inc.
TSX : CSA

Commercial Solutions Inc.

August 10, 2011 07:00 ET

Commercial Announces 18% Growth in Revenues for Third Quarter

EDMONTON, ALBERTA--(Marketwire - Aug. 10, 2011) -

Fiscal 2011 Third Quarter - Highlights

  • Revenues improved by 18.4% over the same quarter in the prior year
  • EBITDA of $0.9 million and Net Earnings of $0.1 million compared to breakeven EBITDA and Net Losses in the same period in the prior year, an improvement of $0.9 million and $0.8 million respectively
  • Positive EPS of $0.01 compared to EPS loss in the same period in the prior year, an improvement of $0.04 per share
All figures in CAD Three Months Ended June 30 Increase (Decrease) Nine Months Ended June 30 Increase (Decrease)
2011 2010 $ % 2011 2010 $ %
Revenue $ 26,014,047 $ 21,963,853 $ 4,050,194 18.4 % $ 78,520,119 $ 66,304,231 $ 12,215,888 18.4 %
EBITDA * $ 946,533 $ 24,946 $ 921,587 3694.3 % $ 2,859,120 $ 501,135 $ 2,357,985 470.5 %
Net Earnings (Loss) $ 115,995 $ (676,083 ) $ 792,078 117.2 % $ 329,688 $ (1,537,839 ) $ 1,867,527 121.4 %
Basic EPS ** $ 0.01 $ (0.03 ) $ 0.04 $ 0.02 $ (0.08 ) $ 0.10
Diluted EPS ** $ 0.01 $ (0.03 ) $ 0.04 $ 0.02 $ (0.08 ) $ 0.10

* EBITDA is defined as Earnings (loss) Before Interest, Taxes, Depreciation and Amortization
** EPS is defined as Earnings (loss) Per Share

COMMERCIAL SOLUTIONS INC. ("Commercial" or "Company") (TSX:CSA) a leading Canadian distributor of bearings, power transmission equipment, oilfield, industrial, safety products today announced its financial results for the third quarter of fiscal 2011. A complete copy of the Company's report is available on the Internet at www.sedar.com.

Financial highlights from second quarter of fiscal 2011 are as follows:

Commercial reported revenue of $26.0 million, an 18.4 percent increase over revenue of $22.0 million for the same period last year. The Company reported EBITDA of $0.9 million in the quarter compared to $0.02 million in the same period last year. Net income for the quarter amounted to $0.1 million compared to net loss of $0.7 million during the third quarter of fiscal 2010.

The significant growth in revenues was driven primarily by increases in drilling and rig building activity in the energy sector. However, activity in all of the Company's other primary markets also showed continued steady growth.

The Company reported positive EPS for the three and nine month periods ending June 30, 2011. Positive EPS was achieved primarily through increased revenues and lower expenses as a percentage of revenue.

Jim Barker, President and CEO of Commercial noted, "We expect to see continued strengthening of our financial results and believe that we are well positioned to grow both organically and through selective acquisitions. Our recent success with replacement of high cost mezzanine debt with lower cost conventional debt will allow us to grow more efficiently. We are encouraged with the overall activity levels going forward; however, we do acknowledge that competing for scarce labour and rising costs of goods and services particularly in Alberta may have the potential to dampen economic growth. The Company is cognizant of these factors and has strategies to mitigate the impact. We continue to view the recovery cautiously and we are not relying solely on a rebound in market activity to grow our business. We will remain focused on our sales and marketing programs. This includes ensuring customers fully appreciate the broad range of products and services that we offer to provide them the best solutions for their operational needs. This allows us the ability to achieve an optimal balance of exposure within the various industry sectors that we serve and build on our strength of providing industry-leading "one-stop-shop" service to our customers across the West."

About Commercial

Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 23 Services Centres and approximately 250 employees located primarily in Western Canada. Commercial offers more than 160,000 items critical to maintenance repair and operations (MRO) and original equipment manufacturer (OEM) customers. The Company represents 450 leading manufacturers and serves over 11,000 customer accounts within a broad cross-section of industries, including oil and gas, forestry, firefighting, food processing, chemical processing, mining, utilities, manufacturing, agriculture and construction. Commercial trades under the symbol "CSA" on the Toronto Stock Exchange. For further information on the Company, please visit www.commercialsolutions.ca and for detailed financial information visit www.sedar.com.

Forward Looking Statements

From time to time, the Company may publish forward-looking statements relating to such matters as expected financial performance, business prospects, development activities and like matters. These statements involve risk and uncertainties, including but not limited to the risk factors previously described. Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. Commercial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, with an exception to securities laws requirements.

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