Commercial Solutions Inc.
TSX : CSA

Commercial Solutions Inc.

August 13, 2012 18:21 ET

Commercial Solutions Reports Solid Third Quarter Results with Continued Growth in Earnings

EDMONTON, ALBERTA--(Marketwire - Aug. 13, 2012) -

Fiscal 2012 Third Quarter - Highlights
  • Revenues improved by 6.3% over same quarter in the prior year
  • EBITDA growth of 4.7% over same quarter in the prior year driven by increased revenues and improved gross margins
  • Net Earnings growth of 113.4% due to increased EBITDA and lower interest expenses
All figures in CAD Three Months Ended June 30 Nine Months Ended June 30
2012 2011 % Change 2012 2011 % Change
Revenue $ 27,654,272 $ 26,014,047 6.3 % $ 87,683,863 $ 78,520,119 11.7 %
EBITDA* $ 990,347 $ 945,533 4.7 % $ 3,766,436 $ 2,881,202 30.7 %
Net Earnings $ 245,403 $ 114,995 113.4 % $ 1,217,077 $ 351,770 246.0 %
Basic EPS** $ 0.01 $ 0.01 $ 0.06 $ 0.02
Diluted EPS** $ 0.01 $ 0.01 $ 0.06 $ 0.02
* EBITDA is defined as Earnings Before Interest, Taxes, Depreciation & Amortization
** EPS is defined as Earnings Per Share

COMMERCIAL SOLUTIONS INC. ("Commercial" or "Company") (TSX:CSA) a leading Canadian distributor of bearings, power transmission equipment, oilfield, industrial, and safety products today announced its financial results for the three-month and nine-month periods ended June 30, 2012. A complete copy of the Company's report will be available on the Internet at www.sedar.com.

Financial highlights from third quarter of fiscal 2012 are as follows:

Commercial reported revenues of $27.7 million, a 6.3% growth from the third quarter in the prior year. EBITDA for the quarter was $1.0 million, representing a 4.7% improvement from the same period in the prior year. The Company reported net earnings of $0.2 million for the quarter compared to $0.1 million during the same quarter of fiscal 2011.

For the nine months ended June 30, 2012, the Company reported revenues of $87.7 million, an 11.7% growth from the same period in the prior year. EBITDA for the nine months was $3.8 million, representing a 30.9% improvement from the same period in the prior year. The Company reported net earnings of $1.2 million for the nine months ended June 30, 2012 compared to $0.4 million during the same period in the prior fiscal year.

Jim Barker, President and CEO of Commercial noted, "We experienced a lower growth rate this quarter compared to the rate we have been trending over the last five quarters. This was driven primarily by the lower rig utilization rate experienced in Western Canada as oilfield activity was subject to unrelenting rain and cool temperatures through the months of May and June. Seasonal recovery is currently underway but continues at a lower rate than last year. However, our focused effort on increasing our sales base in Saskatchewan and the US marketplace continues to show positive results. Over the last nine months, we have invested significantly in our US operation, ensuring that we are fully able to service the energy sector in Texas. With no concerns over a spring break-up, field activity continues all year round. As we expand our business base at our Houston operation, we will lessen the impact of weather on our overall corporate revenues. Each of these expansion markets will remain a key focus for the remainder of the year and are expected to produce continued growth in revenues and profitability".

About Commercial

Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 23 Services Centres and approximately 275 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, agriculture, firefighting, food processing, chemical processing, mining, utilities, manufacturing, 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.

Contact Information

  • Commercial Solutions Inc.
    James Barker
    President and CEO
    (780) 577 2220
    jbarker@csinet.ca

    Commercial Solutions Inc.
    Rozina Kassam, CA
    CFO and Senior VP of Corporate Services
    (780) 903 3093
    rkassam@csinet.ca

    Nobel Investment Corp.
    Dan Patience
    Investor Relations Agent
    1 (800) 499 2388
    nobleinvest94@gmail.com