Commercial Solutions Inc.

Commercial Solutions Inc.

May 14, 2008 08:00 ET

Commercial Announces Second Quarter Fiscal 2008 Results

EDMONTON, ALBERTA--(Marketwire - May 14, 2008) - COMMERCIAL SOLUTIONS INC. ("Commercial" or "Company") (TSX:CSA) -

2008 Q2 Highlights

- Q2 sales decreased by 17.4% to $37.5 million versus $45.4 million during the same period last year

- Q2 EBITDA decreased by 54.9% to $1.8 million versus $4.0 million during the same period last year

- Net earnings for Q2 decreased 70.9 percent over prior year to $0.61 million

- Basic and diluted EPS for the three-month period was $0.03

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All figures Three Months Ended Six Months Ended
in CAD March 31st March 31st
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2008 2007 Change 2008 2007 Change
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Revenue 37,477,869 45,363,206 (17.4)% 71,188,710 86,031,801 (17.3)%
EBITDA 1,812,352 4,022,109 (54.9)% 2,807,003 6,789,717 (58.7)%
Earnings 611,497 2,097,842 (70.9)% 667,446 3,443,359 (80.6)%
Basic EPS 0.03 0.11 (72.7)% 0.03 0.18 (83.3)%
Diluted EPS 0.03 0.10 (70.0)% 0.03 0.17 (82.4)%
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Note: EBITDA is defined as earnings before interest, taxes, depreciation and

COMMERCIAL SOLUTIONS INC. ("Commercial" or "Company") (TSX:CSA) a leading Canadian distributor of bearings, power transmission, oilfield, industrial, safety, survey and resource management equipment products, today announced its financial results for the second quarter ended March 31, 2008. A complete copy of the Company's report is available on the Internet at Financial highlights from the fiscal 2008 first quarter are as follows:

For the three-month period ended March 31, 2008, Commercial reported revenue of $37.5 million compared to revenue of $45.4 million for the same period last year, representing a year-over-year decrease of 17.4 percent. For the quarter, the Company reported a 54.9 percent decrease in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $1.8 million versus $4.0 million for the same period last year. Net income for the quarter decreased by 70.9 percent to $0.61 million compared to $2.1 million during the second quarter of fiscal 2007.

For the six-month period ended March 31, 2008, earnings decreased 80.6 percent to $0.67 million or $0.03 per share ($0.03 diluted) as compared to $3.4 million or $0.18 per share ($0.17 diluted) from the comparable six-month period in 2007. Consolidated revenues decreased by 17.3 percent to $71.2 million from $86.0 million and EBITDA fell by 58.7 percent to $0.67 million from $3.4 million for the prior year.

"Commercial continues to face challenging market conditions with the protracted slowdown in the Western Canadian drilling and forestry industries. While we remain committed to reducing operating costs in fiscal 2008, we continue to apply a judicious process to this activity to ensure we are well positioned to exploit upside opportunity when our markets return." noted Jim Barker, President & CEO of Commercial.

About Commercial

Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 37 Services Centres and approximately 350 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.

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