Commercial Solutions Inc.

Commercial Solutions Inc.

February 12, 2010 07:00 ET

Commercial Announces First Quarter Fiscal 2010 Results

EDMONTON, ALBERTA--(Marketwire - Feb. 12, 2010) - Commercial Solutions Inc. (TSX:CSA)

2010 Q1 Highlights  

  • Revenue decreased to $21.3 million from $35.8 million during the same period last year
  • Negative EBITDA in the current quarter of $0.4 million compared to positive EBITDA of $0.9 million during the same period last year
  • Positive free cash flow of $3.6 million in the current quarter compared to negative free cash flows of $0.04 million in the same period last year 
All figures in CAD   Three Months Ended December 31st
    2009   2008  
Revenue   $21,251,236   $35,788,582  
EBITDA   (371,645 ) 905,294  
Net (Loss) Earnings   (843,876 ) 37,984  
Basic EPS   $(0.04 )  $0.00  
Diluted EPS   $(0.04 ) $0.00  

Note: EBITDA is defined as (loss) earnings before interest, taxes, depreciation and amortization

COMMERCIAL SOLUTIONS INC. ("Commercial" or "Company") (TSX:CSA) a leading Canadian distributor of bearings, power transmission equipment, oilfield, industrial, safety, survey and resource management equipment products, today announced its financial results for the first quarter ended December 31, 2009. A complete copy of the Company's report is available on the Internet at

Financial highlights from the fiscal 2010 first quarter are as follows:

For the three-month period ended December 31, 2009, Commercial reported revenue of $21.3 million compared to revenue of $35.8 million for the same period last year and negative EBITDA of $0.4 million versus positive EBITDA of $0.9 million for the same period last year. The Company incurred a net loss of $0.8 million compared to net earnings of $0.04 million in the same period prior year.

The decrease in revenue and EBITDA in the first quarter of current fiscal year in comparison to the first quarter of prior year is primarily due to the reduction in the drilling activity in Western Canada. During the first quarter of the prior year, field activity for both oil and gas was still generating reasonable revenue at Commercial's energy dependent locations. Since the advent of lower revenues, management has continued to review and address its operating costs. As a result of significant cut-backs initiated during the prior fiscal year along with continued actions in the current fiscal year, Commercial's EBITDA has improved from both the third and fourth quarters of fiscal 2009. Jim Barker, President and CEO of Commercial noted, "While indicators of market stabilization may have started to emerge, we remain cautious as economic uncertainty still prevails. We have taken significant steps to strengthen our operations through increasing our productivity and continue to invest into programs that will help grow top-line results. While continually monitoring revenue expectations along with tighter cost controls in place and a continued strong balance sheet, we expect that Commercial's EBITDA and cash position will continue to improve in fiscal 2010."

About Commercial

Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 26 Services Centres and approximately 235 employees located across 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, food processing, chemical processing, mining and aggregate, utilities, agriculture and construction. Commercial trades under the symbol "CSA" on the Toronto Stock Exchange. For further information on the Company, please visit and for detailed financial information visit

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.

Contact Information

  • Commercial Solutions Inc.
    Rozina Kassam CA
    Chief Financial Officer
    (780) 577-4360
    Commercial Solutions Inc.
    Jim Barker
    President and Chief Executive Officer
    (780) 577-2220